BlackBerry Soars 39% Year to Date: Is the Stock Still a Buy?

BlackBerry Limited’s BB shares have rallied 38.9%, significantly outpacing the Computer Software industry’s decline of 0.6% and the S&P 500 composite’s growth of 2.5% year to date.Blackberry has also outperformed the broader Zacks Computer & Technology sector’s return of 1% and peers within the cybersecurity space, such as Fortinet FTNT and CrowdStrike Holdings, Inc. CRWD, which have gained 14% and 23.3%, respectively, over the same time frame.Price PerformanceImage Source: Zacks Investment ResearchBlackBerry’s strong rally is fueled by a string of encouraging developments, including the sale of the underperforming Cylance unit and the rebranding of the IoT business. Since the announcement of the sale of Cylance on Dec. 16, 2024, shares have rallied 69.9%. The company also strong third-quarter fiscal 2025 results on Dec.19, 2024, wherein BB reported solid adjusted EBITDA performance and positive free cash flow ahead of schedule.Analysts 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 period.Image Source: Zacks Investment ResearchBlackBerry hit a new 52-week high of $5.34 in the last trading session before closing at $5.25 at the end of the day. This is likely to make investors ponder whether the company has further room to run. Should they hold on to the stock or make an exit? Let’s discuss the best course of action for your portfolio.BB’s Focus on Strategic Maneuvers Bodes WellBlackBerry recently completed the sale of its Cylance endpoint security assets to Arctic Wolf in a deal valued at roughly $160 million. With the sale of this underperforming unit, BB is now committed to its Secure Communications business, which includes BlackBerry UEM, BlackBerry AtHoc and BlackBerry SecuSUITE. These solutions will remain central to the company's operations as they strengthen its foothold in the secure communications space.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.BB has renamed its IoT division to "QNX," driven by valuable feedback from customers, partners, employees and stakeholders. 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.Image Source: Zacks Investment ResearchEarlier in January 2025, BlackBerry also unveiled the QNX Cabin, a cutting-edge solution and multiple partnerships, including one with Microsoft Corporation MSFT.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.BB’s Bullish Technical Indicators & Attractive ValuationBB stock is trading at a discount, with a trailing 12-month price/book multiple of 4.29 compared with the industry’s multiple of 8.79.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.Here’s Why You Should Buy BB StockBB presents a compelling investment opportunity due to its improving financial performance and healthy growth prospects. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 131.25%. Focus on strategic initiatives/collaborations and the lucrative IoT and secure communications verticals position it for long-term growth.BB currently sports a Zacks Rank #1 (Strong Buy), which indicates that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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