BlackBerry Jumps 69% in 3 Months: Time to Buy the Stock?

BlackBerry Limited’s BB shares have rallied 68.5%, significantly outpacing the industry’s and the S&P 500 composite’s growth of 2.7% and 4.2%, respectively, in the past three months.Price PeformanceImage Source: Zacks Investment ResearchBlackberry also has outperformed the broader Zacks Computer & Technology sector’s return of 8.3% and peers within the cybersecurity space, such as Fortinet, Inc. FTNT and CrowdStrike Holdings, Inc. CRWD, which have gained 19.5% and 20.7%, respectively, over the same time frame.The stock received impetus following various positive developments in the past few weeks. Recently, BB’s QNX unit announced multiple collaborations, including one with tech giant Microsoft Corporation MSFT. Before that, the company announced a divisional rebranding and the relaunch of its QNX brand. BB renamed its IoT division to "QNX," driven by valuable feedback from customers, partners, employees and stakeholders.The sale of its Cylance business to Arctic Wolf in December 2024 and strong third-quarter fiscal 2025 results, wherein BB reported solid adjusted EBITDA performance and positive free cash flow ahead of schedule, were other triggers.BB stock closed the last session at $4.06, after reaching a new 52-week high of $4.35. Will the stock register further gain in 2025? Let us analyze the stock in detail to ascertain if it is worth considering for investment.Will QNX Rebranding Propel BB’s Top Line?The idea behind rebranding is aimed at enhancing recognition and reinforcing its leadership in the automotive and embedded industries and fuel the development of next-generation software-defined vehicles (SDVs) and mission-critical applications. QNX’s revamped brand identity includes a new logo, website and visual design, reflecting its focus on performance-driven, future-focused solutions.As part of its strategy, BlackBerry unveiled the QNX Cabin, a cutting-edge solution enabling original equipment manufacturers to virtualize digital cockpit development in the cloud. It also strengthened developer support to drive innovation in embedded software across industries.QNX and Microsoft partnered to aid automakers in building, validating and refining software within the cloud to power the evolution of SDVs. The partnership will bring the QNX Software Development Platform 8.0 to Microsoft Azure, offering automakers a comprehensive cloud-based environment to accelerate innovation while reducing development risks. Also, QNX and Microsoft plan to extend their collaboration to include the QNX Hypervisor and the QNX Cabin.Apart from this, QNX, along with Vector and TTTech Auto, has announced a multi-year global collaboration to develop a foundational vehicle software platform. The initiative aims to minimize the complexity and costs of software integration.Sale of BB’s Cylance Unit Bodes WellBlackBerry’s announcement of the sale of its underperforming Cylance business within the Cybersecurity unit cheered investors, leading to a sharp 15% gain that day.The deal, valued at roughly $160 million, includes cash considerations and Arctic Wolf’s common shares. Per the terms of the deal, following purchase price adjustments, BB will receive almost $80 million in cash at settlement and another $40 million a year after settlement. Arctic Wolf will also issue around 5.5 million common shares to BB as part of the deal. This acquisition, expected to close in the fiscal fourth quarter of 2025, is subject to customary regulatory approvals and conditions.Although BlackBerry is divesting its Cylance assets, the company remains committed to its Secure Communications business, which includes BlackBerry UEM, BlackBerry AtHoc and BlackBerry SecuSUITE. These solutions will remain central to BlackBerry's operations as it strengthens the company’s foothold in secure communications.Owing to the Cylance sale, BB announced that it is “standing down” all previously provided guidance, related to cybersecurity and the overall guidance for the company. It is now providing guidance only for the new Secure Communications division. It will provide revised guidance for fiscal 2026 for both the Secure Communications division and total revenues for the fourth quarter of fiscal 2025. For the Secure Communications division, revenues are expected to be in the range of $267-$271 million.Northbound Estimate Revision Activity for BBAnalysts appear bullish, as indicated by the estimate revision activity. EPS estimates for the current fiscal year have improved to 1 cent compared with a loss of 2 cents in the past 60 days. For the next fiscal year, estimates have improved to 7 cents from 2 cents over the same time period.Image Source: Zacks Investment ResearchBB’s Strong Technical Indicators & Compelling ValuationBB stock is trading at a discount with a trailing 12-month price/book multiple of 3.31 compared with the industry’s multiple of 8.93.Image Source: Zacks Investment ResearchTechnical indicators are also supporting its strong performance. The stock is trading above its 50-day and 100-day moving averages, indicating upward momentum and price stability. This technical strength reflects positive market perception and growth prospects.Image Source: Zacks Investment ResearchTime to Buy BB Stock?BlackBerry’s improving financial performance, strategic initiatives/collaborations and focus on lucrative IoT and cybersecurity verticals position it for long-term growth.BB currently has a Zacks Rank #1 (Strong Buy). Moreover, it has a Momentum Score of B. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or 2 (Buy) and a Momentum Score of A or B offer solid investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Fortinet, Inc. (FTNT): Free Stock Analysis Report BlackBerry Limited (BB): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks