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Best Buy (BBY) Gains As Market Dips: What You Should Know
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Best Buy (BBY - Free Report) closed the most recent trading day at $118.97, moving +0.27% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.19%.
Heading into today, shares of the consumer electronics retailer had lost 1.8% over the past month, lagging the Retail-Wholesale sector's loss of 1.14% and the S&P 500's gain of 4.41% 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. The company is expected to report EPS of $1.69, up 49.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.90 billion, up 11.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.16 per share and revenue of $45.40 billion, which would represent changes of +17.96% and +4.03%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for BBY. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.54% higher within the past month. BBY is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that BBY has a Forward P/E ratio of 16.57 right now. Its industry sports an average Forward P/E of 16.8, so we one might conclude that BBY is trading at a discount comparatively.
Also, we should mention that BBY has a PEG ratio of 2.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Consumer Electronics industry currently had an average PEG ratio of 2.14 as of yesterday's close.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Best Buy (BBY) Gains As Market Dips: What You Should Know
Best Buy (BBY - Free Report) closed the most recent trading day at $118.97, moving +0.27% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.19%.
Heading into today, shares of the consumer electronics retailer had lost 1.8% over the past month, lagging the Retail-Wholesale sector's loss of 1.14% and the S&P 500's gain of 4.41% 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. The company is expected to report EPS of $1.69, up 49.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.90 billion, up 11.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.16 per share and revenue of $45.40 billion, which would represent changes of +17.96% and +4.03%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for BBY. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.54% higher within the past month. BBY is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that BBY has a Forward P/E ratio of 16.57 right now. Its industry sports an average Forward P/E of 16.8, so we one might conclude that BBY is trading at a discount comparatively.
Also, we should mention that BBY has a PEG ratio of 2.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Consumer Electronics industry currently had an average PEG ratio of 2.14 as of yesterday's close.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.