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Best Buy (BBY) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Best Buy (BBY - Free Report) closed at $105.31, marking a -0.38% move from the previous day. This change lagged the S&P 500's 1.15% gain on the day.
Prior to today's trading, shares of the consumer electronics retailer had lost 9.07% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.95% and the S&P 500's loss of 4.67% 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 $1.91, down 7.28% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.6 billion, down 2.16% from the year-ago period.
BBY's full-year Zacks Consensus Estimates are calling for earnings of $9.95 per share and revenue of $51.75 billion. These results would represent year-over-year changes of +25.79% and +9.5%, respectively.
Investors should also note any recent changes to analyst estimates for BBY. These recent revisions tend to reflect the evolving nature of short-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.
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 has moved 1.8% higher. BBY is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, BBY currently has a Forward P/E ratio of 10.62. Its industry sports an average Forward P/E of 8.34, so we one might conclude that BBY is trading at a premium comparatively.
It is also worth noting that BBY currently has a PEG ratio of 1.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Consumer Electronics was holding an average PEG ratio of 0.83 at yesterday's closing price.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% 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.
To follow BBY in the coming trading sessions, be sure to utilize Zacks.com.
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Best Buy (BBY) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Best Buy (BBY - Free Report) closed at $105.31, marking a -0.38% move from the previous day. This change lagged the S&P 500's 1.15% gain on the day.
Prior to today's trading, shares of the consumer electronics retailer had lost 9.07% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.95% and the S&P 500's loss of 4.67% 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 $1.91, down 7.28% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.6 billion, down 2.16% from the year-ago period.
BBY's full-year Zacks Consensus Estimates are calling for earnings of $9.95 per share and revenue of $51.75 billion. These results would represent year-over-year changes of +25.79% and +9.5%, respectively.
Investors should also note any recent changes to analyst estimates for BBY. These recent revisions tend to reflect the evolving nature of short-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.
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 has moved 1.8% higher. BBY is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, BBY currently has a Forward P/E ratio of 10.62. Its industry sports an average Forward P/E of 8.34, so we one might conclude that BBY is trading at a premium comparatively.
It is also worth noting that BBY currently has a PEG ratio of 1.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Consumer Electronics was holding an average PEG ratio of 0.83 at yesterday's closing price.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% 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.
To follow BBY in the coming trading sessions, be sure to utilize Zacks.com.