We recently published an article titled Why These 10 Small-Cap Stocks Are Skyrocketing. In this article, we are going to take a look at where BlackBerry Limited (NYSE:BB) stands against the other small-cap stocks.
Wall Street is increasing its bet on small-cap stocks, suggesting that the sector will potentially outperform in 2025. The reasons behind this are simple. While stable rates will be one of the biggest tailwinds for small-cap names, analysts also expect stronger valuations and solid earnings growth from the sector in the year ahead. Most importantly, with expectations tied to the market broadening, investors and analysts are excited to see how the market conditions pan out for small caps.
Ten companies in diverse sectors such as the financials, healthcare, technology, and energy industries, locked in overall positive market gains due to supportive market conditions, macroeconomic environment, and growth potential. That said, let’s take a look at the 10 small-cap stocks that happen to be skyrocketing.
To come up with the 10 names, we only considered stocks with a market capitalization between $1 billion and $10 billion. We then shortlisted the stocks based on their performance in the past quarter and picked the top 10 with the highest 30-day return from December 16, 2024, to January 16, 2025.
A research engineer surrounded by hardware, demonstrating the company’s secure container offerings.
BlackBerry Limited (NYSE:BB)
30-day Return as of January 16, 2024: 34%
BlackBerry Limited (NYSE:BB) rose to $4.14 on January 16, marking a 34% surge in share price from December 16, 2024.
On January 10, analyst firm RBC Capital raised its price target for BlackBerry Limited (NYSE:BB) from $3.25 to $4, while maintaining a sector perform rating on the stock. Cylance, BB’s cybersecurity firm, which has been underperforming for quite some time, has been acquired by Arctic Wolf. The sale of Cylance has led the stock to surge and this is why RBC Capital increased its price target.
RBC Capital believes that the sale of Cylance will bolster the investor’s sentiment in BlackBerry’s (NYSE:BB) shares. In addition to that, Blackberry QNX, an operating system for the embedded systems market, has been performing well and the sale of Cylance will divert attention to BB’s high-performing business.
Since its inception, QNX has deployed its crucial systems in more than 255 million vehicles. The business also serves some of the fastest-growing industries such as the automotive, medical devices, robotics, and commercial vehicles sectors.
Overall BB ranks 4th on our list of the small-cap stocks that are skyrocketing right now. While we acknowledge the potential of BB as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
