Back to top

Image: Bigstock

Best Buy (BBY) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Best Buy (BBY - Free Report) closed the most recent trading day at $107.57, moving -0.13% from the previous trading session. This move lagged the S&P 500's daily gain of 0.55%. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 1.03%.

Prior to today's trading, shares of the consumer electronics retailer had gained 4.54% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.11% and the S&P 500's gain of 3.13% in that time.

Wall Street will be looking for positivity from BBY as it approaches its next earnings report date. The company is expected to report EPS of $3.45, up 18.97% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.20 billion, up 13.17% from the year-ago period.

BBY's full-year Zacks Consensus Estimates are calling for earnings of $7.89 per share and revenue of $47.59 billion. These results would represent year-over-year changes of +29.98% and +9.05%, respectively.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BBY is currently a Zacks Rank #3 (Hold).

In terms of valuation, BBY is currently trading at a Forward P/E ratio of 13.65. This valuation marks a discount compared to its industry's average Forward P/E of 17.41.

Also, we should mention that BBY has a PEG ratio of 1.33. 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. Retail - Consumer Electronics stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 21% 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

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Best Buy Co., Inc. (BBY) - free report >>

Published in