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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 at $63.34 in the latest trading session, marking a -1.84% move from the prior day. This change lagged the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 0.11%.
Heading into today, shares of the consumer electronics retailer had lost 15.36% over the past month, lagging the Retail-Wholesale sector's loss of 8.96% and the S&P 500's loss of 8.4% 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 $1.03, down 50.48% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.29 billion, down 13.6% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.17 per share and revenue of $45.98 billion, which would represent changes of -38.36% and -11.17%, 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 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.02% higher within the past month. Best Buy currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Best Buy is holding a Forward P/E ratio of 10.46. This valuation marks a discount compared to its industry's average Forward P/E of 50.8.
Also, we should mention that BBY has a PEG ratio of 0.59. 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. Retail - Consumer Electronics stocks are, on average, holding a PEG ratio of 2.28 based on yesterday's closing prices.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Best Buy (BBY) Dips More Than Broader Markets: What You Should Know
Best Buy (BBY - Free Report) closed at $63.34 in the latest trading session, marking a -1.84% move from the prior day. This change lagged the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 0.11%.
Heading into today, shares of the consumer electronics retailer had lost 15.36% over the past month, lagging the Retail-Wholesale sector's loss of 8.96% and the S&P 500's loss of 8.4% 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 $1.03, down 50.48% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.29 billion, down 13.6% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.17 per share and revenue of $45.98 billion, which would represent changes of -38.36% and -11.17%, 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 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.02% higher within the past month. Best Buy currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Best Buy is holding a Forward P/E ratio of 10.46. This valuation marks a discount compared to its industry's average Forward P/E of 50.8.
Also, we should mention that BBY has a PEG ratio of 0.59. 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. Retail - Consumer Electronics stocks are, on average, holding a PEG ratio of 2.28 based on yesterday's closing prices.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.