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BlackBerry (BB) Suffers a Larger Drop Than the General Market: Key Insights

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BlackBerry (BB - Free Report) closed the most recent trading day at $4.16, moving -3.48% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.92%. Elsewhere, the Dow saw a downswing of 1.18%, while the tech-heavy Nasdaq depreciated by 0.84%.

The cybersecurity software and services company's shares have seen a decrease of 4.01% over the last month, not keeping up with the Computer and Technology sector's gain of 1.64% and the S&P 500's gain of 1.48%.

Market participants will be closely following the financial results of BlackBerry in its upcoming release. The company is predicted to post an EPS of $0.04, indicating a 100% growth compared to the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.14 per share and revenue of $529 million, indicating changes of +600% and -7.79%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for BlackBerry. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, BlackBerry holds a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that BlackBerry has a Forward P/E ratio of 30.79 right now. This represents a premium compared to its industry average Forward P/E of 28.7.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 66, positioning it in the top 27% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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