We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Best Buy (BBY) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
In the latest trading session, Best Buy (BBY - Free Report) closed at $83.04, marking a +1.88% move from the previous day. This move lagged the S&P 500's daily gain of 2.28%. Meanwhile, the Dow gained 2.13%, and the Nasdaq, a tech-heavy index, added 5.02%.
Prior to today's trading, shares of the consumer electronics retailer had lost 2.27% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 3.03% and the S&P 500's loss of 4.61% in that time.
Investors will be hoping for strength from Best Buy as it approaches its next earnings release. On that day, Best Buy is projected to report earnings of $2.09 per share, which would represent a year-over-year decline of 23.44%. Our most recent consensus estimate is calling for quarterly revenue of $14.74 billion, down 9.94% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.55 per share and revenue of $46.28 billion. These totals would mark changes of -34.57% and -10.59%, respectively, from last year.
Any recent changes to analyst estimates for Best Buy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Best Buy is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Best Buy currently has a Forward P/E ratio of 12.45. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.45.
Investors should also note that BBY has a PEG ratio of 0.7 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Consumer Electronics was holding an average PEG ratio of 0.7 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 99, putting it in the top 40% 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.
To follow BBY in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Best Buy (BBY) Gains But Lags Market: What You Should Know
In the latest trading session, Best Buy (BBY - Free Report) closed at $83.04, marking a +1.88% move from the previous day. This move lagged the S&P 500's daily gain of 2.28%. Meanwhile, the Dow gained 2.13%, and the Nasdaq, a tech-heavy index, added 5.02%.
Prior to today's trading, shares of the consumer electronics retailer had lost 2.27% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 3.03% and the S&P 500's loss of 4.61% in that time.
Investors will be hoping for strength from Best Buy as it approaches its next earnings release. On that day, Best Buy is projected to report earnings of $2.09 per share, which would represent a year-over-year decline of 23.44%. Our most recent consensus estimate is calling for quarterly revenue of $14.74 billion, down 9.94% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.55 per share and revenue of $46.28 billion. These totals would mark changes of -34.57% and -10.59%, respectively, from last year.
Any recent changes to analyst estimates for Best Buy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Best Buy is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Best Buy currently has a Forward P/E ratio of 12.45. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.45.
Investors should also note that BBY has a PEG ratio of 0.7 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Consumer Electronics was holding an average PEG ratio of 0.7 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 99, putting it in the top 40% 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.
To follow BBY in the coming trading sessions, be sure to utilize Zacks.com.