BlackBerry (BB) Registers a Bigger Fall Than the Market: Important Facts to Note

BlackBerry (BB) ended the recent trading session at $8.73, demonstrating a -1.58% change from the preceding day's closing price. This change lagged the S&P 500's 0.17% loss on the day. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq lost 0.83%.

Prior to today's trading, shares of the cybersecurity software and services company had lost 20.09% lagged the Computer and Technology sector's gain of 3.01% and the S&P 500's gain of 3.52%.

Market participants will be closely following the financial results of BlackBerry in its upcoming release. On that day, BlackBerry is projected to report earnings of $0.04 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $143 million, up 10.34% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.17 per share and a revenue of $612.37 million, signifying shifts of +6.25% and +11.52%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for BlackBerry. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. BlackBerry is holding a Zacks Rank of #2 (Buy) right now.

Looking at valuation, BlackBerry is presently trading at a Forward P/E ratio of 52.18. This signifies a premium in comparison to the average Forward P/E of 21.72 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research