This Undervalued TSX Stock is Down 46% and Worth Holding for the Long Term

Blackberry’s stock price is rapidly gaining momentum as revenue, profitability, and earnings are strengthening.

Karen Thomas, MSc, CFA

Karen is a stock market enthusiast focused on uncovering those stocks that she believes the market has mispriced. She does this through fundamental and quantitative analysis of companies and their industries, as well as a study of future opportunities and trends. She holds a Masters degree in Finance, the CFA designation, and has over 20 years of experience in the investment management industry. Having worked at a major pension fund, as well as two leading mutual fund firms as an analyst and portfolio manager, she has solid investing expertise which she aims to share with her readers.

Published July 20, 9:00 pm EDT

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Key Points

Blackberry, once a dominant handheld phone leader trading above $250, fell hard after losing to iPhones and Androids in the early 2010s, but transformed itself into an IoT and cybersecurity leader leveraging its technological excellence.
The company commands over 50% market share in the rapidly growing connected car market (expected to reach $420 billion by 2032 with 20% CAGR), with QNX software embedded in more than 275 million cars across 270 makes and models from the world's top automakers.
Q1 fiscal 2027 results showed accelerating momentum with total revenue up 26% to $152.9 million, adjusted EBITDA up 144% to $36.3 million, and QNX segment revenue up 26% to $72 million with an impressive 86% gross margin.

As a TSX stock that once soared above $250, Blackberry Ltd. (TSX: BB) has been through it all. The rise, the fall, and the in-between stagnant period of going nowhere. But through it all, there’s one thing that Blackberry has always maintained – technological excellence.

Today, Blackberry is a TSX stock that’s gaining traction and momentum in both its business and its stock price. Here’s why this undervalued TSX stock is a great long-term buy.

A robotic hand interacting with a visual AI touchscreen display. — Source: Getty Images

Blackberry: What happened to this TSX stock?

First, a brief look at Blackberry’s history. Blackberry was once the undeniable leader in handheld phones. As you know, this is no longer the case, as Smartphones such as the iPhone and Android began to dominate the market in the early 2010’s. By 2016, the “Blackberry” phone was pretty much history.

At that time, the company had to do something drastic to survive. It was a touch and go situation until finally, Blackberry opted to change course and embark on a transformation. Its areas of choice were the Internet of Thing (IoT) and cybersecurity industries. Both drew on Blackberry’s expertise and as this undervalued TSX stock strengthened its presence and focus on these areas, this expertise grew. The company’s reputation now proceeds it.

As one would expect in such a situation, Blackberry’s stock price fell hard. In fact, it traded below $10 and stayed in this range for many years. The stock is currently trading at approximately $12.40. This is 46% lower than 2022 levels and way below its historic highs.

Blackberry and the connected car

For years, this undervalued TSX stock has been quietly working to establish itself as the leader in software technology for critical systems in cars, medicine, robotics, and other industrial uses. Recently, its QNX segment is showing increasing momentum as this push is finally coming to fruition.

The global connected car market is big and rapidly growing. According to estimates, the global connected car market is expected to grow to US $420 billion by 2032. This represents an approximately 20% compound annual growth rate (CAGR). Blackberry is very much a part of this with an over 50% market share. You can find the company’s QNX software in more than 275 million cars and more than 270 makes and models, including those from the world’s top 10 automakers and top 5 Tier 1 suppliers.

Latest results

Blackberry’s latest results demonstrate the momentum that the company is finally seeing in its business.

After a strong fiscal 2026, this TSX stock has kept the momentum in fiscal 2027. Total Q1 revenue increased 26% to $152.9 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 144% to $36.3 million. And adjusted earnings per share (EPS) came in at $0.04 compared to $0.02 in the same period last year.

Blackberry’s QNX segment revenue also increased 26% to $72 million with a gross margin of 86%. This was driven by all components of QNX, including development licenses, professional services, and royalties.

The bottom line

Blackberry is an undervalued TSX stock that is rising from the ashes. While it has taken a long time, momentum is picking up steam and Blackberry stock is very well-positioned in both the IoT and the cybersecurity industries. An ideal long-term holding.