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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 at $87.79 in the latest trading session, marking a -0.2% move from the prior day. This change lagged the S&P 500's 1.29% gain on the day. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, lost 4.94%.
Coming into today, shares of the consumer electronics retailer had gained 7.2% in the past month. In that same time, the Retail-Wholesale sector gained 6.05%, while the S&P 500 gained 5.64%.
Investors will be hoping for strength from Best Buy as it approaches its next earnings release, which is expected to be March 2, 2023. The company is expected to report EPS of $2.09, down 23.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.75 billion, down 9.88% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Best Buy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 1.45% lower. Best Buy is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Best Buy currently has a Forward P/E ratio of 12.91. Its industry sports an average Forward P/E of 12.91, so we one might conclude that Best Buy is trading at a no noticeable deviation comparatively.
It is also worth noting that BBY currently has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company'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 186, which puts it in the bottom 27% 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.
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 at $87.79 in the latest trading session, marking a -0.2% move from the prior day. This change lagged the S&P 500's 1.29% gain on the day. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, lost 4.94%.
Coming into today, shares of the consumer electronics retailer had gained 7.2% in the past month. In that same time, the Retail-Wholesale sector gained 6.05%, while the S&P 500 gained 5.64%.
Investors will be hoping for strength from Best Buy as it approaches its next earnings release, which is expected to be March 2, 2023. The company is expected to report EPS of $2.09, down 23.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.75 billion, down 9.88% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Best Buy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 1.45% lower. Best Buy is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Best Buy currently has a Forward P/E ratio of 12.91. Its industry sports an average Forward P/E of 12.91, so we one might conclude that Best Buy is trading at a no noticeable deviation comparatively.
It is also worth noting that BBY currently has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company'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 186, which puts it in the bottom 27% 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.
To follow BBY in the coming trading sessions, be sure to utilize Zacks.com.