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

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BlackBerry (BB - Free Report) closed the most recent trading day at $8.86, moving -0.89% from the previous trading session. This move lagged the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.01%.

Coming into today, shares of the cybersecurity software and services company had gained 1.48% in the past month. In that same time, the Computer and Technology sector lost 1.56%, while the S&P 500 gained 0.89%.

Wall Street will be looking for positivity from BB as it approaches its next earnings report date. This 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, our latest consensus estimate is calling for revenue of $212.58 million, down 5.94% from the prior-year quarter.

BB's full-year Zacks Consensus Estimates are calling for earnings of $0.11 per share and revenue of $880.89 million. These results would represent year-over-year changes of -21.43% and -8.05%, respectively.

Any recent changes to analyst estimates for BB should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BB is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, BB currently has a Forward P/E ratio of 81.27. This valuation marks a premium compared to its industry's average Forward P/E of 14.12.

Also, we should mention that BB has a PEG ratio of 4.38. 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. BB's industry had an average PEG ratio of 0.94 as of yesterday's close.

The Wireless Non-US industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 105, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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