Why Investors Are Buzzing about BlackBerry, IBM, Deutsche Bank, and Others

Although the Nikkei 225 fell over 1.3% last night, the U.S. stock market is rather quiet, as all three index futures are hugging the flat line.

In this article, we analyze some companies that traders are currently watching, including several tech companies and three financial ones, BlackBerry Ltd (NASDAQ:BBRY), Moody’s Corporation (NYSE:MCO), International Business Machines Corp. (NYSE:IBM), Deutsche Bank AG (USA) (NYSE:DB), and Royal Bank of Scotland Group PLC (NYSE:RBS). Without further elaboration, let’s dig in, and also see what the smart money thinks of each stock.

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BlackBerry Ltd (NASDAQ:BBRY) shares have surged in extended market trading after the company reported its fiscal second-quarter results. For the time period, Blackberry broke even, versus analyst estimates of a loss of $0.05 per share. Revenue was $352 million, down by 28.3% year-over-year, and $41.75 million below the consensus estimate. Exciting investors today is the news of a strategy shift. CEO John Chen said: “We are focusing on software development, including security and applications. The company plans to end all internal hardware development and will outsource that function to partners. This allows us to reduce capital requirements and enhance return on invested capital”. BlackBerry Ltd (NASDAQ:BBRY)’s management sees software and service sales growth of 30% for the full fiscal year. The company also upped its adjusted EPS outlook for the time period to between flat and a loss of $0.05 per share, versus the current consensus of a loss of $0.15 per share. Prem Watsa‘s Fairfax Financial Holdings reported a holding of over 46.7 million shares of BlackBerry Ltd (NASDAQ:BBRY) as of the end of June.

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Moody’s Corporation (NYSE:MCO) is in the spotlight after the company raised its outlook for the full 2016. For the period, the company now expects adjusted EPS of $4.55 to $4.65, versus the average analyst estimate of $4.58, while GAAP EPS is estimated between $4.70 and $4.80, mostly due to a non-cash forex gain. Shares of the company are up by 11% year-to-date so far. Of the around 749 top funds that we track, 34 were long Moody’s Corporation (NYSE:MCO) at the end of the second quarter.

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On the next page, we examine International Business Machines Corp, Deutsche Bank AG (USA), and Royal Bank of Scotland Group PLC.