We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Invest in BlackBerry (BBRY) Stock Following Q3?
Read MoreHide Full Article
Shares of BlackBerry Limited have been performing well of late despite the struggles in the broader market. The stock comfortably outperformed the Zackscategorized Wireless Non-US industry over the last six months. The stock gained 8.33% as against the industry’s decline of 7.50% over the same period.
Ushering in further good news, the stock recently reported narrower-than-expected loss in the third quarter of fiscal 2017 (ended Nov 30, 2016). The company's new guidance with respect to the bottom line for fiscal 2017 is also encouraging. It now expects to be profitable in fiscal 2017. The previous outlook was in the range of break-even results to a loss of 5 cents per share. BlackBerry is on track to achieve 30% growth in software and service revenues in fiscal 2017.
We are encouraged by the company's agreement with the newly formed joint venture (JV), PT BB Merah Putih, to license its software and services in producing handsets for the Indonesian market. The JV and its affiliates account for almost 50% of the mobile market in Indonesia. Earlier this year, Blackberry also signed a commendable cross-platform deal with Emtek, an entertainment, media and technology power house of Indonesia.
Moreover, the company's deal with leading auto manufacturer Ford Motor Company (F - Free Report) is to be quite impressive. Per the new agreement , it will see expanded use of BlackBerry's QNX and security software. The deal is expected to boost BlackBerry's top line.
We are positive on the company's decision to discontinue internal hardware development and focus exclusively on the software business. Declining smartphone sales have been hurting the company for quite some time. Thereby, the decision to exit the business of smartphone manufacturing is a prudent one. The company recently launched DTEK60 manufactured by TCL which runs on Alphabet Inc. (GOOGL - Free Report) Android platform. In December, BlackBerry also entered into a deal with TCL to produce BlackBerry handsets for certain countries. This move comes with an enhanced focus on Software and licensing service amid increasing competition from the likes of Apple Inc. (AAPL - Free Report) .
The above positives have prompted us to upgrade BlackBerry to a Zacks Rank #2 (Buy).
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Should You Invest in BlackBerry (BBRY) Stock Following Q3?
Shares of BlackBerry Limited have been performing well of late despite the struggles in the broader market. The stock comfortably outperformed the Zacks categorized Wireless Non-US industry over the last six months. The stock gained 8.33% as against the industry’s decline of 7.50% over the same period.
Ushering in further good news, the stock recently reported narrower-than-expected loss in the third quarter of fiscal 2017 (ended Nov 30, 2016). The company's new guidance with respect to the bottom line for fiscal 2017 is also encouraging. It now expects to be profitable in fiscal 2017. The previous outlook was in the range of break-even results to a loss of 5 cents per share. BlackBerry is on track to achieve 30% growth in software and service revenues in fiscal 2017.
We are encouraged by the company's agreement with the newly formed joint venture (JV), PT BB Merah Putih, to license its software and services in producing handsets for the Indonesian market. The JV and its affiliates account for almost 50% of the mobile market in Indonesia. Earlier this year, Blackberry also signed a commendable cross-platform deal with Emtek, an entertainment, media and technology power house of Indonesia.
Moreover, the company's deal with leading auto manufacturer Ford Motor Company (F - Free Report) is to be quite impressive. Per the new agreement , it will see expanded use of BlackBerry's QNX and security software. The deal is expected to boost BlackBerry's top line.
We are positive on the company's decision to discontinue internal hardware development and focus exclusively on the software business. Declining smartphone sales have been hurting the company for quite some time. Thereby, the decision to exit the business of smartphone manufacturing is a prudent one. The company recently launched DTEK60 manufactured by TCL which runs on Alphabet Inc. (GOOGL - Free Report) Android platform. In December, BlackBerry also entered into a deal with TCL to produce BlackBerry handsets for certain countries. This move comes with an enhanced focus on Software and licensing service amid increasing competition from the likes of Apple Inc. (AAPL - Free Report) .
The above positives have prompted us to upgrade BlackBerry to a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>