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

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In the latest trading session, Best Buy (BBY - Free Report) closed at $114.83, marking a +1.37% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.24%.

Prior to today's trading, shares of the consumer electronics retailer had gained 0.2% over the past month. This has lagged the Retail-Wholesale sector's gain of 0.22% and the S&P 500's gain of 4.09% in that time.

BBY will be looking to display strength as it nears its next earnings release. On that day, BBY is projected to report earnings of $1.91 per share, which would represent year-over-year growth of 11.7%. Meanwhile, our latest consensus estimate is calling for revenue of $11.6 billion, up 17.05% from the prior-year quarter.

BBY's full-year Zacks Consensus Estimates are calling for earnings of $8.53 per share and revenue of $49.56 billion. These results would represent year-over-year changes of +7.84% and +4.86%, respectively.

Any recent changes to analyst estimates for BBY 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant within the past month. BBY is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, BBY is currently trading at a Forward P/E ratio of 13.29. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 13.29.

Also, we should mention that BBY has a PEG ratio of 1.6. 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 0.97 based on yesterday's closing prices.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 66, putting it in the top 26% 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 Zacks.com.


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