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Best Buy (BBY) Rides High on Growth Strategies: Time to Hold
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Best Buy Co., Inc. (BBY - Free Report) digital efforts ever since the outbreak of the pandemic to cater to consumers’ necessities are commendable. Management continuously focuses on improving its digital capabilities including boosting the omnichannel services, such as buy online and pickup in store services. The company is also deepening its customer engagement with more in-home consultations and in-home installations.
Remarkably, the company is constantly conducting tests and pilots to become more customer-centric, digitally focused and efficient. Its membership drive under the name ‘Best Buy Totaltech’ is quite a wise move. This program offers unlimited Geek Squad technical support at exclusive member pricing along with free shipping and standard installation.
Buoyed by such efforts, this consumer electronic retailer’s shares have increased 28.7% in the past three months, comfortably outperforming the industry’s 12.5% gain.
Let’s Delve Deep
Detailing Best Buy’s initiatives further, it also provides convenient pickup options like in-store pickup, curbside pickup, lockers and alternate pickup locations. The company’s consultation service, which supports customers with personalized tech needs, has been gaining traction.
In addition, management has been making significant investments in fundamental technology capabilities, such as data and analytics as well as cloud migration to drive scale, efficiency and effectiveness. Management remains focused on optimizing its stores. Thus, Best Buy continues making investments in the stores and elevating unique experiences.
Image Source: Zacks Investment Research
Best Buy is also progressing on its virtual store format, where customers interact with experts via chat, audio, video and screen sharing. Moreover, the company has made investments in the distribution center network to improve productivity. Best Buy has invested in store-based fulfillment, which includes ship-from-store customer fulfillment centers.
The company is also making significant headway in the health and beauty category. To this end, management had launched a skincare technology product across its stores and online. In the health business category, the company has launched over-the-counter hearing aids in about 300 stores and online, with a new online hearing assessment tool. Best Buy acquired Current Health which develops a market-leading remote patient monitoring platform allowing physicians to monitor and connect with patients in their homes. The company’s other notable buyouts in the health space include GreatCall in 2018 and Critical Signal Technologies in 2019.
Best Buy has also expanded its assortment in categories like outdoor living to provide customers with complete solutions. In this respect, its acquisition of Yardbird, a leading direct-to-consumer company that specializes in premium outdoor furniture, is worth noting. Such well-chalked plans are likely to keep contributing to the company’s online revenues.
Conclusion
The Zacks Consensus Estimate for fiscal 2024 earnings per share is currently pegged at $6.81, suggesting growth of 3.6% year over year. An impressive long-term earnings expected growth rate of 17.7% and a Value Score of A for this Zacks Rank #3 (Hold) stock further exhibits strength.
Wrapping up, Best Buy seems well poised to tap growth opportunities given its solid tech-agnostic drives.
Three Top-Ranked Stocks
We have highlighted three top-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , American Eagle Outfitters (AEO - Free Report) and Boot Barn (BOOT - Free Report) .
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 0.5% and 526.3%, respectively, from the year-ago reported figures. ANF delivered an earnings surprise of 107.7% in the last reported quarter.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently sports a Zacks Rank of 1. AEO has delivered an earnings surprise of 82.6% in the last reported quarter.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 3.3% and 24.2%, respectively, from the year-ago reported figures.
Boot Barn, a fashion retailer of apparel and accessories, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS suggests growth of 8.2% and 9.1%, respectively, from the year-ago reported figures.
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Best Buy (BBY) Rides High on Growth Strategies: Time to Hold
Best Buy Co., Inc. (BBY - Free Report) digital efforts ever since the outbreak of the pandemic to cater to consumers’ necessities are commendable. Management continuously focuses on improving its digital capabilities including boosting the omnichannel services, such as buy online and pickup in store services. The company is also deepening its customer engagement with more in-home consultations and in-home installations.
Remarkably, the company is constantly conducting tests and pilots to become more customer-centric, digitally focused and efficient. Its membership drive under the name ‘Best Buy Totaltech’ is quite a wise move. This program offers unlimited Geek Squad technical support at exclusive member pricing along with free shipping and standard installation.
Buoyed by such efforts, this consumer electronic retailer’s shares have increased 28.7% in the past three months, comfortably outperforming the industry’s 12.5% gain.
Let’s Delve Deep
Detailing Best Buy’s initiatives further, it also provides convenient pickup options like in-store pickup, curbside pickup, lockers and alternate pickup locations. The company’s consultation service, which supports customers with personalized tech needs, has been gaining traction.
In addition, management has been making significant investments in fundamental technology capabilities, such as data and analytics as well as cloud migration to drive scale, efficiency and effectiveness. Management remains focused on optimizing its stores. Thus, Best Buy continues making investments in the stores and elevating unique experiences.
Image Source: Zacks Investment Research
Best Buy is also progressing on its virtual store format, where customers interact with experts via chat, audio, video and screen sharing. Moreover, the company has made investments in the distribution center network to improve productivity. Best Buy has invested in store-based fulfillment, which includes ship-from-store customer fulfillment centers.
The company is also making significant headway in the health and beauty category. To this end, management had launched a skincare technology product across its stores and online. In the health business category, the company has launched over-the-counter hearing aids in about 300 stores and online, with a new online hearing assessment tool. Best Buy acquired Current Health which develops a market-leading remote patient monitoring platform allowing physicians to monitor and connect with patients in their homes. The company’s other notable buyouts in the health space include GreatCall in 2018 and Critical Signal Technologies in 2019.
Best Buy has also expanded its assortment in categories like outdoor living to provide customers with complete solutions. In this respect, its acquisition of Yardbird, a leading direct-to-consumer company that specializes in premium outdoor furniture, is worth noting. Such well-chalked plans are likely to keep contributing to the company’s online revenues.
Conclusion
The Zacks Consensus Estimate for fiscal 2024 earnings per share is currently pegged at $6.81, suggesting growth of 3.6% year over year. An impressive long-term earnings expected growth rate of 17.7% and a Value Score of A for this Zacks Rank #3 (Hold) stock further exhibits strength.
Wrapping up, Best Buy seems well poised to tap growth opportunities given its solid tech-agnostic drives.
Three Top-Ranked Stocks
We have highlighted three top-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , American Eagle Outfitters (AEO - Free Report) and Boot Barn (BOOT - Free Report) .
Abercrombie & Fitch, a leading casual apparel retailer currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 0.5% and 526.3%, respectively, from the year-ago reported figures. ANF delivered an earnings surprise of 107.7% in the last reported quarter.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently sports a Zacks Rank of 1. AEO has delivered an earnings surprise of 82.6% in the last reported quarter.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 3.3% and 24.2%, respectively, from the year-ago reported figures.
Boot Barn, a fashion retailer of apparel and accessories, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS suggests growth of 8.2% and 9.1%, respectively, from the year-ago reported figures.