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Best Buy (BBY) Gains But Lags Market: What You Should Know

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Best Buy (BBY - Free Report) closed at $82.67 in the latest trading session, marking a +1.41% move from the prior day. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.

Heading into today, shares of the consumer electronics retailer had gained 1.32% over the past month, lagging the Retail-Wholesale sector's gain of 5.52% and the S&P 500's gain of 2.3% in that time.

Investors will be hoping for strength from Best Buy as it approaches its next earnings release. In that report, analysts expect Best Buy to post earnings of $2.11 per share. This would mark a year-over-year decline of 22.71%. Our most recent consensus estimate is calling for quarterly revenue of $14.76 billion, down 9.81% from the year-ago period.

BBY's full-year Zacks Consensus Estimates are calling for earnings of $6.59 per share and revenue of $46.3 billion. These results would represent year-over-year changes of -34.17% and -10.55%, respectively.

Investors might also notice recent changes to analyst estimates for Best Buy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.62% higher. Best Buy is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Best Buy currently has a Forward P/E ratio of 12.37. For comparison, its industry has an average Forward P/E of 12.37, which means Best Buy is trading at a no noticeable deviation to the group.

It is also worth noting that BBY currently has a PEG ratio of 0.7. 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 0.7 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 189, which puts it in the bottom 25% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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