We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Best Buy (BBY) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Best Buy (BBY - Free Report) closed the most recent trading day at $88.31, moving +1.2% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, added 3.16%.
Heading into today, shares of the consumer electronics retailer had gained 1.73% over the past month, outpacing the Retail-Wholesale sector's gain of 0.38% and lagging the S&P 500's gain of 3.6% in that time.
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, the Zacks Consensus Estimate for revenue is projecting net sales of $14.75 billion, down 9.88% from the year-ago period.
It is also important to note the 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 1.6% lower. Best Buy currently has a Zacks Rank of #3 (Hold).
Investors should also note Best Buy's current valuation metrics, including its Forward P/E ratio of 12.81. This represents a no noticeable deviation compared to its industry's average Forward P/E of 12.81.
Also, we should mention that BBY has a PEG ratio of 0.72. 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. Retail - Consumer Electronics stocks are, on average, holding a PEG ratio of 0.72 based on yesterday's closing prices.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Best Buy (BBY) Gains As Market Dips: What You Should Know
Best Buy (BBY - Free Report) closed the most recent trading day at $88.31, moving +1.2% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, added 3.16%.
Heading into today, shares of the consumer electronics retailer had gained 1.73% over the past month, outpacing the Retail-Wholesale sector's gain of 0.38% and lagging the S&P 500's gain of 3.6% in that time.
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, the Zacks Consensus Estimate for revenue is projecting net sales of $14.75 billion, down 9.88% from the year-ago period.
It is also important to note the 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 1.6% lower. Best Buy currently has a Zacks Rank of #3 (Hold).
Investors should also note Best Buy's current valuation metrics, including its Forward P/E ratio of 12.81. This represents a no noticeable deviation compared to its industry's average Forward P/E of 12.81.
Also, we should mention that BBY has a PEG ratio of 0.72. 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. Retail - Consumer Electronics stocks are, on average, holding a PEG ratio of 0.72 based on yesterday's closing prices.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.