Why BlackBerry (BB) Dipped More Than Broader Market Today

In the latest close session, BlackBerry (BB) was down 2.45% at $3.98. This change lagged the S&P 500's daily loss of 0.53%. Elsewhere, the Dow lost 0.9%, while the tech-heavy Nasdaq lost 0.38%.

Prior to today's trading, shares of the cybersecurity software and services company had lost 16.39% lagged the Computer and Technology sector's loss of 1.66% and the S&P 500's loss of 0.5%.

The investment community will be paying close attention to the earnings performance of BlackBerry in its upcoming release. The company's upcoming EPS is projected at $0.04, signifying a 100.00% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.14 per share and revenue of $529 million, indicating changes of +600% and -7.79%, respectively, compared to the previous year.

Any recent changes to analyst estimates for BlackBerry should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BlackBerry presently features a Zacks Rank of #3 (Hold).

Looking at valuation, BlackBerry is presently trading at a Forward P/E ratio of 29.14. For comparison, its industry has an average Forward P/E of 29.24, which means BlackBerry is trading at a discount to the group.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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