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Best Buy (BBY) Stock Dips While Market Gains: Key Facts

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Best Buy (BBY - Free Report) closed the latest trading day at $75.12, indicating a -1.35% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.87%. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 1.11%.

The consumer electronics retailer's shares have seen a decrease of 6.75% over the last month, not keeping up with the Retail-Wholesale sector's loss of 3.67% and the S&P 500's loss of 3.97%.

Analysts and investors alike will be keeping a close eye on the performance of Best Buy in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.08, showcasing a 6.09% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.97 billion, down 5.23% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.03 per share and revenue of $42 billion. These totals would mark changes of -5.34% and -3.34%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Best Buy. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% lower. Currently, Best Buy is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Best Buy is currently being traded at a Forward P/E ratio of 12.63. This valuation marks a discount compared to its industry's average Forward P/E of 527.32.

One should further note that BBY currently holds a PEG ratio of 1.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Consumer Electronics industry was having an average PEG ratio of 1.99.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 237, placing it within the bottom 6% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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

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