BlackBerry Surges 21% in a Month: Is the Stock Still a Buy?
From Nasdaq: 2025-05-14 09:00:00
BlackBerry Limited’s BB shares have surged 21.3%, outperforming the Computer Software industry and S&P 500. The company’s pivot towards its QNX business is showing promise, with strong momentum in automotive and secure communication divisions. Analysts are bullish, with EPS estimates for the current fiscal year on the rise, making BB stock a compelling buying opportunity.
BlackBerry’s QNX business is gaining traction in the automotive sector, with strategic partnerships and strong revenue growth. The company’s Secure Communication division is also performing well, driven by operational execution and cost-saving efforts. Despite uncertainties in core government markets, BlackBerry’s improving cash generation and financials support a sustainable turnaround.
BlackBerry’s total adjusted EBITDA for fiscal 2025 improved by $54 million, driven by cost-cutting measures. Cash flow and investments saw significant growth, positioning the company for reinvestment or capital return. With positive estimate revisions and a discounted valuation, analysts believe BB stock presents a strong buying opportunity for investors looking for long-term growth.
Analysts are optimistic about BlackBerry’s future, with EPS estimates on the rise and the stock trading at a discount compared to industry peers. The company’s focus on its QNX business, strong financial performance, and cost-cutting efforts are key drivers for its sustainable turnaround. With a Zacks Rank #1 (Strong Buy), BB stock is poised for further growth in the coming months.
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