The Motley Fool

2 Reasons Why BlackBerry Should Be on Every Investor’s Watch List

Image source: Getty Images

This week, it appears growth stocks are once again the “in” stocks investors want to pursue. Bond yields have taken a pause from their slow-and-steady rise. And growth expectations continued to get revised upward, as the economic reopening (hopefully) nears.

That said, growth stocks like BlackBerry (TSX:BB)(NYSE:BB) have lagged the pack. It appears investors remain cautious with respect to this company’s future prospects. Indeed, I can understand that.

However, here are two catalysts I think investors should consider with BlackBerry stock, particularly at these levels.

Meme stock selloff appears to continue for BlackBerry

As one of the key meme stocks investors focused in on last year, it’s not surprising BlackBerry’s sold off the way it has of late. Indeed, most of the company’s meme companions have seen similar selloffs of late.

Investors who bought at the top have seen roughly two-thirds of their capital deteriorate in a couple months. That’s not good.

However, for those who have steered clear of this mayhem, BlackBerry is now trading near levels it started the year at. So, would investors have bought this stock at the beginning of 2021?

Now, the whole short-squeeze fiasco kind of caught me off guard. I didn’t think BlackBerry stock would spike like it did at the beginning of the year. But that’s neither here nor there. In January, I was bullish on the stock due to the company’s growth catalysts. Those catalysts haven’t changed.

Therefore, I’d invite investors to consider this idea. If they would have bought the stock prior to the melt-up, why not consider it today?

Growth catalysts still in place

Indeed, the deal with Amazon to develop the company’s IVY platform based on its QNX software is still in place. As is the company’s partnership with Baidu to develop next-gen autonomous driving vehicles.

The catalysts remain perfectly intact.

Now, this isn’t some sort of explosive growth stock we’re talking about here. BlackBerry is still in turnaround mode, and there’s lots of work to be done before it can reasonably get back to its previous growth ways.

However, I think it’s important investors keep this stock in perspective. Given its current price, I think it’s certainly worth a look as a speculative buy today.

Bottom line

This isn’t the BlackBerry of old we’re talking about here.

Indeed, momentum is very negative for this stock right now. In this market, momentum is everything. Accordingly, investors may want to wait for a better entry point before jumping in.

That said, BlackBerry is a newfound software-oriented business with some big backers supporting its technology. It’s now trading back at the levels investors wish they could have bought this stock earlier in the year. Indeed, it’s an intriguing proposition today.

Like BlackBerry? Here are a few other high-growth stocks to consider today:

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.

Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Chris MacDonald has no position in any of the stocks mentioned. David Gardner owns shares of Amazon and Baidu. Tom Gardner owns shares of Baidu. The Motley Fool owns shares of and recommends Amazon and Baidu. The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.