Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified BlackBerry ( BBRY) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified BlackBerry as such a stock due to the following factors:
- BBRY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $233.7 million.
- BBRY has traded 3.0 million shares today.
- BBRY is down 3% today.
- BBRY was up 5.7% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in BBRY with the Ticky from Trade-Ideas. See the FREE profile for BBRY NOW at Trade-Ideas More details on BBRY: BlackBerry Limited provides wireless communications solutions worldwide. Currently there is 1 analyst that rates BlackBerry a buy, 3 analysts rate it a sell, and 22 rate it a hold. The average volume for BlackBerry has been 12.9 million shares per day over the past 30 days. BlackBerry has a market cap of $5.6 billion and is part of the technology sector and telecommunications industry. Shares are up 50.7% year-to-date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates BlackBerry as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- BLACKBERRY LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, BLACKBERRY LTD reported poor results of -$11.17 versus -$1.20 in the prior year.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, BLACKBERRY LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $302.00 million or 52.06% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- BBRY, with its very weak revenue results, has greatly underperformed against the industry average of 2.2%. Since the same quarter one year prior, revenues plummeted by 68.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.36, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that BBRY's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.11 is high and demonstrates strong liquidity.
- You can view the full BlackBerry Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.