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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 $108.88, moving +1.52% from the previous trading session. This change outpaced the S&P 500's 0.69% loss on the day.

Heading into today, shares of the consumer electronics retailer had lost 3.68% over the past month, outpacing the Retail-Wholesale sector's loss of 5.22% and lagging the S&P 500's loss of 2.58% in that time.

Wall Street will be looking for positivity from BBY as it approaches its next earnings report date. On that day, BBY is projected to report earnings of $1.91 per share, which would represent a year-over-year decline of 7.28%. Our most recent consensus estimate is calling for quarterly revenue of $11.6 billion, down 2.16% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.98 per share and revenue of $51.75 billion. These totals would mark changes of +26.17% and +9.5%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for BBY. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. BBY is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, BBY currently has a Forward P/E ratio of 10.74. This valuation marks a premium compared to its industry's average Forward P/E of 8.16.

It is also worth noting that BBY currently has a PEG ratio of 1.42. 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 0.83 as of yesterday's close.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% 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.

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