Once again, BlackBerry (TSX:BB)(NYSE:BB) stock is seeing a big rally these days similar to its massive rally back in January. The Canadian tech stock continues to attract investor attention as it rallies with several other so-called meme stocks. This has many investors wondering if BlackBerry stock is worth buying today.
BlackBerry is a tech stock. The company is well known as a smartphone maker. Today, though, its main business is software, and more specifically, software security.
Software security is an important subsector of the technology industry. Security is always crucial, especially with new technology being developed every day and more devices connected to each other.
So BlackBerry certainly has potential. But the question that investors should be asking is at what price?
What price makes BlackBerry stock a buy?
Because BlackBerry is still a decent company, many investors may not want to neglect it altogether. However, it’s crucial not to overpay for the stock.
In its current position, the company has some headwinds. However, the market seems to be bullish on BlackBerry’s potential in the long run.
With that said, the consensus analyst target price is nearly 40% below Monday’s closing price. In BlackBerry’s current position, it seems analysts don’t think the stock is worth more than $11.
So if you’re considering buying the stock, I’d be looking to wait until it’s below $10 again. Unless its company can have a major development to its business, it looks like it’s overpriced at the moment.
Rather than gamble on whether or not BlackBerry’s price can gain in the short-term, investors should look for even better tech stocks that are actually trading undervalue today.
We’re issuing a BUY alert on this TSX space stockClick here to learn more!
A top Canadian tech stock to buy now
There are several other Canadian tech stocks that aren’t trading overvalued and offer great potential for investors today. One of those is Shopify (TSX:SHOP)(NYSE:SHOP), the top growth stock in Canada.
Shopify is a stock that investors know well and has a tonne of potential to continue growing for years into the future.
Plus, unlike BlackBerry stock, Shopify is actually trading below its average analyst target price and offers more growth potential over the coming years.
According to analyst estimates, there is more than 20% upside in Shopify’s shares if you buy at this price, a major difference from BlackBerry stock, which looks considerably overvalued.
Shopify is one of the best companies in Canada, so I would certainly be using this discount to buy some shares.
It’s not only put up impressive growth over the last few years but it’s also made some strong partnerships and continues to expand its operations and growth potential.
Because it’s so dominant in an industry that can scale rapidly, Shopify is a stock that deserves to trade at a growth premium.
That’s why, at these prices, the stock is not just attractive as an investment. It’s a lot more appealing than speculating on the stock price of BlackBerry.
Most investors would agree Shopify is the better stock with superior growth potential. So the fact that it’s also cheaper than BlackBerry stock makes it a no-brainer buy and points to why investors should avoid BlackBerry unless you can buy it undervalued and you plan to hold it for years to come.
In addition to Shopify, here is another top Canadian stock that's a better buy than BlackBerry today!
Our team of diligent analysts at Motley Fool Stock Advisor Canada has identified one little-known public company founded right here in Canada that’s at the cutting-edge of the space industry and recently completed a transformational acquisition, all while making a handsome profit in the process!
The best part is that in a market where many stocks are selling at all-time-highs, this stock is trading at what looks like a VERY reasonable valuation… for now.
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.
Fool contributor Daniel Da Costa has no positions in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends BlackBerry and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.