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BlackBerry (BB) Laps the Stock Market: Here's Why

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In the latest trading session, BlackBerry (BB - Free Report) closed at $3.68, marking a +1.94% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.44%. On the other hand, the Dow registered a gain of 0.7%, and the technology-centric Nasdaq increased by 0.27%.

Prior to today's trading, shares of the cybersecurity software and services company had gained 25.78% over the past month. This has outpaced the Computer and Technology sector's gain of 15.87% and the S&P 500's gain of 10.62% in that time.

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 per share, which would represent year-over-year growth of 100%.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.10 per share and revenue of $521 million, indicating changes of +400% and -9.19%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for BlackBerry. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, BlackBerry boasts a Zacks Rank of #1 (Strong Buy).

With respect to valuation, BlackBerry is currently being traded at a Forward P/E ratio of 36.1. This represents a premium compared to its industry's average Forward P/E of 26.9.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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