Summary
BlackBerry Limited, a technology company, has shown strong technical buy signals and significant price appreciation, gaining 113.23% since the Trend Seeker buy signal on 11/26..
The company offers a range of cybersecurity and IoT solutions and BlackBerry Dynamics, and has recently sold its Cylance assets to Arctic Wolf..
Despite strong technical indicators, fundamental factors show a mixed outlook with expected revenue and earnings decreases this year but a significant earnings rebound next year..
Analysts are cautious with mixed ratings and a consensus price target of $4, suggesting a potential 25% loss; MorningStar sees the stock as 54% overvalued.
The Chart of the Day belongs to the technology company BlackBerry (BB) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 11/26 the stock gained 113.23%.
BB (Barchart)
BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company operates through three segments: Cybersecurity, IoT, and Licensing and Other. The company offers CylanceENDPOINT, an integrated endpoint security solution; CylanceGUARD, a managed detection and response solution; CylanceEDGE, an AI-powered continuous authentication zero trust network access solution; CylanceINTELLIGENCE, a contextual cyber threat intelligence service; BlackBerry Dynamics offers a development platform and secure container for mobile applications; BlackBerry Workspaces a secure Enterprise File Sync and Share (EFSS) solution; BlackBerry Messenger (BBM) Enterprise, an enterprise-grade secure instant messaging solution for messaging, voice and video; BlackBerry SecuSUITE is a certified, multi-OS voice and text messaging solution; BlackBerry AtHoc, a secure networked critical event management solution; and BlackBerry unified endpoint management (UEM) solutions. It also provides BlackBerry Technology Solutions (BTS); BlackBerry Certicom, a patented elliptic curve cryptography, which provides device security, anti-counterfeiting and product authentication solutions; BlackBerry Radar offers monitoring and telematics solutions; BlackBerry Professional; and cyber security consulting services. In addition, the company is involved in the patent licensing and legacy service access fees business. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was incorporated in 1984 and is headquartered in Waterloo, Canada.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 123.24+ Weighted Alpha
- 104.28% gain in the last year
- 1.31 - 60 month Beta
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 14 new highs and up 37.72% in the last month
- Relative Strength Index 61.19%
- Technical support level at $5.72
- Recently traded at $5.55 with 50 day moving average of $4.16
Fundamental Factors:
- Market Cap $3.50 billion
- Revenue expected to decrease 33.83% this year and another 3.38% next year
- Earnings estimated to decrease 85.00% this year but increase by 1,522.93% next year
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts issued 1 strong buy, 4 hold and 2 sell opinions on the stock
- Their price targets between $3 and $6 with a consensus of $4 for a 25% loss
- Value Line gives the stock an average rating with a price target of $4 for a 25% loss and comments:" BlackBerry looks a bit different than it did a few months ago. Indeed, in mid-December, the company inked an agreement to sell its Cylance endpoint security assets to Arctic Wolf. "
- CFRAs MarketScope rates the stock a hold
- MorningStar thinks the stock is 54% over valued and comments: " We like the renewed focus by BlackBerry on QNX, which we see as the strongest piece of the business. Following the divestment of Cylance, we now see QNX as a primary driver of BlackBerry's results that should support improved growth and profitability. "
- Of the 16,898 investors following the stock on Motley Fool 11,009 think the stock will beat the market and 5,889 think it won't
- 169,690 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
