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

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Best Buy (BBY - Free Report) closed the most recent trading day at $130.09, moving +0.79% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%.

Heading into today, shares of the consumer electronics retailer had gained 20.34% over the past month, outpacing the Retail-Wholesale sector's gain of 9.07% and the S&P 500's gain of 8.19% 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 23, 2021. In that report, analysts expect BBY to post earnings of $1.91 per share. This would mark a year-over-year decline of 7.28%. Meanwhile, our latest consensus estimate is calling for revenue of $11.6 billion, down 2.16% from the prior-year quarter.

BBY's full-year Zacks Consensus Estimates are calling for earnings of $10.04 per share and revenue of $51.87 billion. These results would represent year-over-year changes of +26.93% and +9.74%, respectively.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.53% higher. BBY is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note BBY's current valuation metrics, including its Forward P/E ratio of 12.86. This represents a premium compared to its industry's average Forward P/E of 9.61.

Meanwhile, BBY's PEG ratio is currently 1.7. 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. BBY's industry had an average PEG ratio of 0.99 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 34, which puts it in the top 14% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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