In the latest close session, BlackBerry (BB) was down 2.57% at $3.60. This change lagged the S&P 500's 1.6% loss on the day. On the other hand, the Dow registered a loss of 1.23%, and the technology-centric Nasdaq decreased by 2.24%.
The stock of cybersecurity software and services company has fallen by 15.17% in the past month, lagging the Computer and Technology sector's gain of 4.45% and the S&P 500's gain of 2.25%.
The investment community will be paying close attention to the earnings performance of BlackBerry in its upcoming release. Simultaneously, our latest consensus estimate expects the revenue to be $125 million, showing a 13.79% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.1 per share and a revenue of $525.5 million, representing changes of +400% and -8.4%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for BlackBerry. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, BlackBerry holds a Zacks Rank of #3 (Hold).
In the context of valuation, BlackBerry is at present trading with a Forward P/E ratio of 36.9. This represents a premium compared to its industry average Forward P/E of 28.71.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 31% echelons 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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BlackBerry Limited (BB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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