BlackBerry (BB) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - BlackBerry has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and near-term stock price movements, indicating that revisions in earnings estimates can lead to significant price changes [4][6]. - Institutional investors play a role in this relationship, as they adjust their valuations based on earnings estimates, which can lead to buying or selling of shares and consequently affect stock prices [4]. BlackBerry's Earnings Outlook - BlackBerry is projected to earn $0.01 per share for the fiscal year ending February 2025, reflecting a year-over-year decline of 80% [8]. - Despite the decline in earnings per share, analysts have raised their estimates for BlackBerry, with the Zacks Consensus Estimate increasing by 50% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - BlackBerry's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].