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BlackBerry (BB) Outpaces Stock Market Gains: What You Should Know

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BlackBerry (BB - Free Report) closed the most recent trading day at $8.34, moving +1.46% from the previous trading session. This change outpaced the S&P 500's 0.47% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.74%.

Coming into today, shares of the cybersecurity software and services company had gained 10.63% in the past month. In that same time, the Computer and Technology sector gained 9.76%, while the S&P 500 gained 7.71%.

BB will be looking to display strength as it nears its next earnings release. On that day, BB is projected to report earnings of $0.04 per share, which would represent a year-over-year decline of 20%. Our most recent consensus estimate is calling for quarterly revenue of $227.14 million, down 4.96% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.16 per share and revenue of $890.07 million. These totals would mark changes of +14.29% and -7.09%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for BB. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BB is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that BB has a Forward P/E ratio of 50.33 right now. For comparison, its industry has an average Forward P/E of 12.8, which means BB is trading at a premium to the group.

We can also see that BB currently has a PEG ratio of 2.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Wireless Non-US stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.

The Wireless Non-US industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow BB in the coming trading sessions, be sure to utilize Zacks.com.


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