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Best Buy Co., Inc. (BBY - Analyst Report) is slated to report its second-quarter fiscal 2014 results on Aug 20, 2013. In the last quarter, it posted a positive surprise of 28%. Let’s see how things are shaping up for this announcement.

Factors this Past Quarter

Best Buy posted better-than-expected first-quarter fiscal 2014 results, wherein earnings of 32 cents a share surpassed the Zacks Consensus Estimate, but dropped substantially by 57.9% from the year-ago quarter. The year-over-year decline in the bottom line was due to one lesser week in the quarter under review compared with the prior-year period, the shift of the Super Bowl in the fourth quarter of fiscal 2013, competitive pricing policies and no major product launches.

Earnings Whispers?

Our proven model does not conclusively show that Best Buy is likely to beat earnings estimate this quarter. This is because a stock needs to have both a positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, #2 or #3 for this to happen. This is not the case here, as you will see below.

Negative Zacks ESP: ESP for Best Buy is -33.33%. This is because the Most Accurate Estimate stands at 8 cents, while the Zacks Consensus Estimate is pegged at 12 cents.

Zacks Rank #2 (Buy): Best Buy’s Zacks Rank #2 when combined with a negative ESP makes surprise prediction difficult. We caution against stocks with a Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Citi Trends, Inc. (CTRN - Analyst Report), Earnings ESP of +2.33% and a Zacks Rank #2 (Buy).

New York & Company Inc. (NWY - Snapshot Report), Earnings ESP of +33.33% and a Zacks Rank #3 (Hold).

Cabela's Incorporated (CAB - Analyst Report), Earnings ESP of +4.17% and a Zacks Rank #3 (Hold).

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