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Best Buy (BBY) Gains But Lags Market: What You Should Know
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In the latest trading session, Best Buy (BBY - Free Report) closed at $82.42, marking a +0.19% move from the previous day. The stock lagged the S&P 500's daily gain of 0.23%. At the same time, the Dow added 0.06%, and the tech-heavy Nasdaq gained 0.1%.
Coming into today, shares of the consumer electronics retailer had gained 5.3% in the past month. In that same time, the Retail-Wholesale sector gained 13.28%, while the S&P 500 gained 10.76%.
Investors will be hoping for strength from Best Buy as it approaches its next earnings release, which is expected to be August 30, 2022. In that report, analysts expect Best Buy to post earnings of $1.36 per share. This would mark a year-over-year decline of 54.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.23 billion, down 13.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.50 per share and revenue of $46.44 billion. These totals would mark changes of -35.06% and -10.27%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Best Buy. Recent revisions tend to reflect the latest 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.
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. The Zacks Consensus EPS estimate has moved 25.24% lower within the past month. Best Buy currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Best Buy is currently trading at a Forward P/E ratio of 12.66. This represents a discount compared to its industry's average Forward P/E of 15.44.
We can also see that BBY currently has a PEG ratio of 0.71. 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 0.75 at yesterday's closing price.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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Best Buy (BBY) Gains But Lags Market: What You Should Know
In the latest trading session, Best Buy (BBY - Free Report) closed at $82.42, marking a +0.19% move from the previous day. The stock lagged the S&P 500's daily gain of 0.23%. At the same time, the Dow added 0.06%, and the tech-heavy Nasdaq gained 0.1%.
Coming into today, shares of the consumer electronics retailer had gained 5.3% in the past month. In that same time, the Retail-Wholesale sector gained 13.28%, while the S&P 500 gained 10.76%.
Investors will be hoping for strength from Best Buy as it approaches its next earnings release, which is expected to be August 30, 2022. In that report, analysts expect Best Buy to post earnings of $1.36 per share. This would mark a year-over-year decline of 54.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.23 billion, down 13.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.50 per share and revenue of $46.44 billion. These totals would mark changes of -35.06% and -10.27%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Best Buy. Recent revisions tend to reflect the latest 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.
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. The Zacks Consensus EPS estimate has moved 25.24% lower within the past month. Best Buy currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Best Buy is currently trading at a Forward P/E ratio of 12.66. This represents a discount compared to its industry's average Forward P/E of 15.44.
We can also see that BBY currently has a PEG ratio of 0.71. 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 0.75 at yesterday's closing price.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.