NEW YORK ( TheStreet) -- Research in Motion (RIMM) has been Wall Street's whipping boy for quite a while. The recent earnings report shows the stock may not be as bad as most of the analysts have thought. A comparison of the stock's price with some of the other telecommunications stocks show the price momentum has been very good.
The graph provided by Barchart reveals over the last two and a half months RIMM was up 29% while
(AMT - Get Report)
was up 5%,
(CCI - Get Report)
was up 6% and
(SBAC - Get Report)
was up 11%.
Founded in 1984 and based in Waterloo, Canada, RIM makes the Blackberry mobile phones and supporting software and technology, including application suites and services for the enterprise sector.
Factors to consider
Recently the stock has an 88% Barchart technical buy signal and a Trend Spotter buy signal. The gained 9.87% in the last month and has a 57.25% relative strength index. Currently, it is above its 20-, 50- and 100-day moving average and Barchart computes a technical support level at 8.45. Recently the stock is trading at 8.56, above its 50-day moving average of 7.67.
The recent earnings release surprised a lot of analysts on Wall Street and revealed things are not as bad as predicted. Thirty five brokerage firms have assigned 47 analysts to monitor the numbers and they have revised their projections. Although revenue is expected to be down by 40.10% this year, the Jan. 30th release of the new Blackberry 10 smartphone should level out revenue next year.
The company is actually selling more phones and signing up more subscribers now. Earnings are estimated to be down 130.60% this year but cost saving measures are predicted to result in earnings to be up 55.60% next year and increase annually by a 10%-plus rate over the next five years.
The price-to-earnings ratio is 6.83% and compares favorably to the 15.2% P/E of the market The financial strength is B+ and
rates this a D+ stock.
Individual investor interest is high with 5,800 readers of
giving the stock a 76% vote to beat the market. Wall Street analysts have four buy, 26 hold, 11 underperform and six sell recommendations in place.