Back to top

BlackBerry (BB) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

BlackBerry (BB - Free Report) closed at $9.57 in the latest trading session, marking a -0.62% move from the prior day. This change lagged the S&P 500's daily loss of 0.25%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.53%.

Heading into today, shares of the cybersecurity software and services company had gained 4.11% over the past month, outpacing the Computer and Technology sector's loss of 3.92% and the S&P 500's loss of 2.35% in that time.

Investors will be hoping for strength from BB as it approaches its next earnings release, which is expected to be December 19, 2018. The company is expected to report EPS of $0.02, down 33.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $212.58 million, down 5.94% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.11 per share and revenue of $880.89 million. These totals would mark changes of -21.43% and -8.05%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for BB. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BB is currently a Zacks Rank #1 (Strong Buy).

Investors should also note BB's current valuation metrics, including its Forward P/E ratio of 87.54. For comparison, its industry has an average Forward P/E of 13.39, which means BB is trading at a premium to the group.

Meanwhile, BB's PEG ratio is currently 4.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Wireless Non-US stocks are, on average, holding a PEG ratio of 1.05 based on yesterday's closing prices.

The Wireless Non-US industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% 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.

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




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


BlackBerry Limited (BB) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in