Is BlackBerry (TSX:BB) Stock Still A Buy?

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Summary

  • BlackBerry stock bounced back more than 8 per cent, with a one-day volume of 7.61 million on Wednesday. The stock was also up 6.80 during its pre-market hours.
  • The company has been expanding its software segments this year, including electric vehicle automation and cybersecurity solutions.

Stocks of BlackBerry Limited (TSX: BB) rebounded over eight per cent on Wednesday, February 24 with more than 7.61 million shares exchanging hands.

After hitting its 52-week high last month, BlackBerry witnessed a massive correction. The stock is currently trading at an attractive price and could possibly double this year.

The technology company has already started shifting its business from hardware to software. It has plans to engage in the booming electric vehicle (EV) industry this year, particularly in the automation segment.

Here is why Blackberry may be the buy and hold stock investors are looking at:

 

BlackBerry Limited (TSX: BB)

 

The stock was trading at C$ 36 per common share on January 27, 2020, after collaborating with Amazon Web Services and resolving a lawsuit with the social media giant Facebook. It observed heavy sell-off in late January and early February.

The current share price stands at C$ 14.15 per piece, down 60.70 per cent from its 52-week high of C$ 36. However, it has bounced back by more than 259 per cent from its 52-week low of C$ 3.94 as recorded on March 18, 2020.

The Software as a Service (SaaS) stock has dropped over 38 per cent in the last one month, but it is still up 85 per cent in the last three months.

Its present market cap is nearly C$ 8 billion, and it is actively trading with a 30-day average volume of 11.60 million. The stock’s one-year return is 93.84 per cent.

Image Source: Kalkine Group @2021

According to BlackBerry Cyber Threat Report, a steep cyberthreat surge has become an issue for vulnerable organizations amid the COVID-19 pandemic. Organizations have been putting their essential data online for their employees and clients due to lockdowns. The company also engages in cybersecurity intelligence and offering cyber solutions.

The latest rise in the stock price and high trading volume indicate that BlackBerry is still on the investors’ radar, and it might grow further in the upcoming trading sessions.

The stock is up as much as 6.80 per cent pre-market on Thursday.

 

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.

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