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Best Buy (BBY) Dips More Than Broader Markets: What You Should Know

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Best Buy (BBY - Free Report) closed the most recent trading day at $91.06, moving -1.58% from the previous trading session. This change lagged the S&P 500's daily loss of 0.97%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.49%.

Prior to today's trading, shares of the consumer electronics retailer had lost 8.51% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.34% and the S&P 500's gain of 4.71% in that time.

Investors will be hoping for strength from Best Buy as it approaches its next earnings release. The company is expected to report EPS of $1.57, down 29.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.34 billion, down 11.16% from the year-ago period.

BBY's full-year Zacks Consensus Estimates are calling for earnings of $8.97 per share and revenue of $50.08 billion. These results would represent year-over-year changes of -10.39% and -3.24%, respectively.

Investors should also note any recent changes to analyst estimates for Best Buy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.93% higher. Best Buy is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Best Buy has a Forward P/E ratio of 10.31 right now. This represents a premium compared to its industry's average Forward P/E of 9.74.

Investors should also note that BBY has a PEG ratio of 1.09 right now. 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 0.75 as of yesterday's close.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 248, putting it in the bottom 2% 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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