Market Preview: Stocks Losing Luster
The stock has languished throughout 2012, plunging nearly 70% in the past year and hitting a 52-week low of $6.22 on Monday. Shares enjoyed a bounce of 6%-plus during Wednesday's regular session after Goldman Sachs boosted its revenue view but the company's predicament still looks pretty grim as it deals with stiff competition from Apple's (AAPL) iPhone 5 and the plethora of smartphones powered by Google's Android operating system.
One of the many big question marks hanging over the company is when the BlackBerry 10 will actually arrive. Back in late June, the company said it's targeting the first quarter of calendar 2013 and backing off that already-delayed goal would be a disaster. Wall Street will also be looking for an update on the extent of the layoffs the company is undertaking.
The sell side is overwhelmingly pessimistic about the stock with just 2 of the 47 analysts covering RIM at buy and rest split between hold (28), undperform (11) and sell (6). The median 12-month price target sits at $8.
Still, Sterne Agee, which has a neutral rating on RIM shares, is expecting a loss of 29 cents a share in the quarter, narrower than the consensus view."For the first time in a while, we believe consensus estimates may be adequately pessimistic looking for a sizable Y/Y decline in revenue and a big operating loss," wrote analyst Shawn Wu. "With low expectations, we believe there is a fair chance that the company may meet or even slightly beat. However, it may not matter as we think most important will be its cash balance and downsizing plans that hopefully won't put too much cash strain." Check out TheStreet's quote page for Research In Motion for year-to-date share performance, analyst ratings, earnings estimates and much more. Nike (NKE) is also due to report its numbers with the release of the sneaker giant's fiscal first-quarter results due before the opening bell. The average estimate of analysts polled by Thomson Reuters is for a profit of $1.12 a share on revenue of $6.42 billion. The stock has gained more than 20% over the past year but has lost roughly 16% since hitting a 52-week high of $114.81 on May 3.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV