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Are Investors Undervaluing Best Buy (BBY) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Best Buy (BBY - Free Report) is a stock many investors are watching right now. BBY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.62 right now. For comparison, its industry sports an average P/E of 18.71. BBY's Forward P/E has been as high as 18.83 and as low as 7.95, with a median of 14.55, all within the past year.
Investors should also note that BBY holds a PEG ratio of 2.02. 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. BBY's industry currently sports an average PEG of 2.09. BBY's PEG has been as high as 2.48 and as low as 0.98, with a median of 1.75, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Best Buy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBY feels like a great value stock at the moment.
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Are Investors Undervaluing Best Buy (BBY) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Best Buy (BBY - Free Report) is a stock many investors are watching right now. BBY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 15.62 right now. For comparison, its industry sports an average P/E of 18.71. BBY's Forward P/E has been as high as 18.83 and as low as 7.95, with a median of 14.55, all within the past year.
Investors should also note that BBY holds a PEG ratio of 2.02. 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. BBY's industry currently sports an average PEG of 2.09. BBY's PEG has been as high as 2.48 and as low as 0.98, with a median of 1.75, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Best Buy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBY feels like a great value stock at the moment.