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Best Buy (BBY) Stock Sinks As Market Gains: What You Should Know
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Best Buy (BBY - Free Report) closed the most recent trading day at $77.63, moving -1.53% from the previous trading session. This move lagged the S&P 500's daily gain of 0.29%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 0.07%.
Coming into today, shares of the consumer electronics retailer had gained 9.48% in the past month. In that same time, the Retail-Wholesale sector gained 3.89%, while the S&P 500 gained 4.36%.
Best Buy will be looking to display strength as it nears its next earnings release, which is expected to be August 30, 2022. In that report, analysts expect Best Buy to post earnings of $1.32 per share. This would mark a year-over-year decline of 55.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.23 billion, down 13.64% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.30 per share and revenue of $45.84 billion, which would represent changes of -37.06% and -11.43%, respectively, from the prior year.
Investors might also notice 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 24.94% lower within the past month. Best Buy currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Best Buy has a Forward P/E ratio of 12.51 right now. Its industry sports an average Forward P/E of 14.71, so we one might conclude that Best Buy is trading at a discount comparatively.
Also, we should mention that BBY has a PEG ratio of 0.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BBY's industry had an average PEG ratio of 0.73 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 241, which puts it in the bottom 5% 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
Best Buy (BBY - Free Report) closed the most recent trading day at $77.63, moving -1.53% from the previous trading session. This move lagged the S&P 500's daily gain of 0.29%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 0.07%.
Coming into today, shares of the consumer electronics retailer had gained 9.48% in the past month. In that same time, the Retail-Wholesale sector gained 3.89%, while the S&P 500 gained 4.36%.
Best Buy will be looking to display strength as it nears its next earnings release, which is expected to be August 30, 2022. In that report, analysts expect Best Buy to post earnings of $1.32 per share. This would mark a year-over-year decline of 55.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.23 billion, down 13.64% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.30 per share and revenue of $45.84 billion, which would represent changes of -37.06% and -11.43%, respectively, from the prior year.
Investors might also notice 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 24.94% lower within the past month. Best Buy currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Best Buy has a Forward P/E ratio of 12.51 right now. Its industry sports an average Forward P/E of 14.71, so we one might conclude that Best Buy is trading at a discount comparatively.
Also, we should mention that BBY has a PEG ratio of 0.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BBY's industry had an average PEG ratio of 0.73 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 241, which puts it in the bottom 5% 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.