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

Price Performance - BlackBerry Limited's (BB) shares have rallied 68.5% in the past three months, significantly outpacing the industry's growth of 2.7% and the S&P 500 composite's growth of 4.2% [1] - BB 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 [3] Strategic Developments - BB's QNX unit announced multiple collaborations, including one with tech giant Microsoft Corporation (MSFT) [4] - The company announced a divisional rebranding and the relaunch of its QNX brand, renaming its IoT division to "QNX" [4] - BB unveiled the QNX Cabin, a cutting-edge solution enabling original equipment manufacturers to virtualize digital cockpit development in the cloud [7] - QNX and Microsoft partnered to bring the QNX Software Development Platform 8.0 to Microsoft Azure, offering automakers a comprehensive cloud-based environment [8] - QNX, along with Vector and TTTech Auto, announced a multi-year global collaboration to develop a foundational vehicle software platform [9] Financial Performance - BB reported solid adjusted EBITDA performance and positive free cash flow ahead of schedule in its third-quarter fiscal 2025 results [5] - The sale of its Cylance business to Arctic Wolf in December 2024 is valued at roughly $160 million, including cash considerations and Arctic Wolf's common shares [11] - BB will receive almost$80 million in cash at settlement and another $40 million a year after settlement, along with around 5.5 million common shares from Arctic Wolf [11] - For the Secure Communications division, revenues are expected to be in the range of$267-$271 million [13] Analyst Sentiment - EPS estimates for the current fiscal year have improved to 1 cent compared with a loss of 2 cents in the past 60 days [14] - For the next fiscal year, estimates have improved to 7 cents from 2 cents over the same time period [14] - BB 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 [15] Technical Indicators - The stock is trading above its 50-day and 100-day moving averages, indicating upward momentum and price stability [16] Investment Potential - BB currently has a Zacks Rank 1 (Strong Buy) and a Momentum Score of B, indicating solid investment opportunities [17]