BlackBerry (BB) closed the most recent trading day at $8.67, moving +2.97% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.02%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.07%.
Shares of the cybersecurity software and services company have appreciated by 63.81% over the course of the past month, outperforming the Computer and Technology sector’s gain of 9.97%, and the S&P 500’s gain of 5.12%.
Analysts and investors alike will be keeping a close eye on the performance of BlackBerry in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $0.03, reflecting a 50% increase from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.17 per share and a revenue of $600.2 million, signifying shifts of +6.25% and +9.31%, respectively, from the last year.
Any recent changes to analyst estimates for BlackBerry should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, BlackBerry boasts a Zacks Rank of #2 (Buy).
In terms of valuation, BlackBerry is currently trading at a Forward P/E ratio of 48.58. Its industry sports an average Forward P/E of 17.92, so one might conclude that BlackBerry is trading at a premium comparatively.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
