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

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BlackBerry (BB - Free Report) closed at $8.47 in the latest trading session, marking a +1.32% move from the prior day. This change outpaced the S&P 500's 0.8% gain on the day. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 1.14%.

Prior to today's trading, shares of the cybersecurity software and services company had lost 9.13% over the past month. This has lagged the Computer and Technology sector's loss of 5.07% and the S&P 500's loss of 3.2% in that time.

Investors will be hoping for strength from BB as it approaches its next earnings release. In that report, analysts expect BB to post earnings of $0.01 per share. This would mark a year-over-year decline of 66.67%. Our most recent consensus estimate is calling for quarterly revenue of $249.12 million, up 14.8% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.10 per share and revenue of $1.13 billion. These totals would mark changes of -58.33% and +22.99%, respectively, from last year.

Any recent changes to analyst estimates for BB should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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.

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 holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that BB has a Forward P/E ratio of 88 right now. This valuation marks a premium compared to its industry's average Forward P/E of 13.02.

The Wireless Non-US industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 5% 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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