Many people relatively new to stock market investing might have their eyes on an investment opportunity they wished they had invested in years ago. Every now and then, a growth stock comes along that makes investors rich beyond measure, while most people overlook it for one reason or another.
It’s almost impossible to simply know that there are stocks that can guarantee such growth. The only thing you can do is try to identify those with the best potential to deliver such outsized returns. The company must be solid, have the kind of business that can sustain significant long-term growth, and provide returns that can make you much wealthier down the line.
There is a TSX tech stock that might fit the bill. The funny thing is, you might know about the company, but you have forgotten about it in recent years. Other companies in the industry it used to dominate became bigger while it faded into the background.
Most people might have thought it went under in the smartphone industry, with other names taking the forefront. However, this Canadian company has been busy reinventing itself to become a major player in two of the most important markets for the next decade and beyond: Internet of Things (IoT) and enterprise software solutions that align with changing security needs.
BlackBerry (TSX: BB) might seem like a has-been to those who know it from its smartphone days. Today, I will discuss why it can be one of the most important long-term holdings to have in your portfolio.
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BlackBerry stock
Far removed from the smartphone giant it originally was, BlackBerry is now a $2.64 billion market capitalization software company. It engages in providing intelligent security software and services to governments and enterprises. The company capitalizes on artificial intelligence (AI) technology and machine learning (ML) to provide cybersecurity, data privacy, and safety solutions. It also focuses on offering endpoint security and has a strong IoT business unit.
BlackBerry has underperformed the broader market since its shift to being a software provider. However, BlackBerry’s QNX operating system, an offering in the automotive sector, is gaining traction throughout the industry. It might not have established itself as a giant in the enterprise software space, but the software company is doing well in the automotive industry.
Fiscal 2025 performance
Despite being sluggish and lagging behind other software giants, BlackBerry stock has been performing well. Its fourth quarter of fiscal 2025 was much better than expected. The company’s chief executive officer called 2024 a transformative year for the company. BlackBerry surpassed $141.7 million in revenue, and its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) hit the $21.1 million mark, exceeding expectations.
The company also sold off Cylance, its cybersecurity business arm, to Arctic Wolf and cut its losses there. With Cylance no longer pulling it down, BlackBerry is a leaner company that’s focusing more on its QNX platform. The company is expanding the platform into the rail, aerospace, defence, and medical equipment spaces.
Foolish takeaway
The tariffs might negatively impact the automotive industry in the short term, potentially creating problems for BlackBerry. However, the company has a wide enough economic moat to navigate these turbulent waters and emerge stronger on the other side.
It might not be a risk-free investment to unlock multi-fold growth in your self-directed portfolio. However, BlackBerry is definitely a stock to keep on your radar.
