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Best Buy (BBY) Gains But Lags Market: What You Should Know
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In the latest trading session, Best Buy (BBY - Free Report) closed at $119.86, marking a +0.88% move from the previous day. This change lagged the S&P 500's 2.21% gain on the day. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, added 3.86%.
Heading into today, shares of the consumer electronics retailer had gained 5.66% over the past month, outpacing the Retail-Wholesale sector's loss of 0.74% and the S&P 500's gain of 0.67% in that time.
Wall Street will be looking for positivity from BBY as it approaches its next earnings report date. This is expected to be November 24, 2020. On that day, BBY is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 49.56%. Our most recent consensus estimate is calling for quarterly revenue of $10.90 billion, up 11.62% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.16 per share and revenue of $45.40 billion. These totals would mark changes of +17.96% and +4.03%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BBY. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% higher. BBY currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, BBY is holding a Forward P/E ratio of 16.59. This valuation marks a discount compared to its industry's average Forward P/E of 17.1.
Also, we should mention that BBY has a PEG ratio of 2.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Consumer Electronics was holding an average PEG ratio of 2.15 at yesterday's closing price.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Best Buy (BBY) Gains But Lags Market: What You Should Know
In the latest trading session, Best Buy (BBY - Free Report) closed at $119.86, marking a +0.88% move from the previous day. This change lagged the S&P 500's 2.21% gain on the day. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, added 3.86%.
Heading into today, shares of the consumer electronics retailer had gained 5.66% over the past month, outpacing the Retail-Wholesale sector's loss of 0.74% and the S&P 500's gain of 0.67% in that time.
Wall Street will be looking for positivity from BBY as it approaches its next earnings report date. This is expected to be November 24, 2020. On that day, BBY is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 49.56%. Our most recent consensus estimate is calling for quarterly revenue of $10.90 billion, up 11.62% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.16 per share and revenue of $45.40 billion. These totals would mark changes of +17.96% and +4.03%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BBY. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% higher. BBY currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, BBY is holding a Forward P/E ratio of 16.59. This valuation marks a discount compared to its industry's average Forward P/E of 17.1.
Also, we should mention that BBY has a PEG ratio of 2.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Consumer Electronics was holding an average PEG ratio of 2.15 at yesterday's closing price.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.