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Best Buy (BBY) Stock Sinks As Market Gains: Here's Why
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Best Buy (BBY - Free Report) ended the recent trading session at $74.40, demonstrating a -0.09% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.03%. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 1.19%.
The the stock of consumer electronics retailer has fallen by 6.46% in the past month, lagging the Retail-Wholesale sector's gain of 0.23% and the S&P 500's loss of 1.57%.
Analysts and investors alike will be keeping a close eye on the performance of Best Buy in its upcoming earnings disclosure. The company is expected to report EPS of $1.08, down 6.09% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors should also take note of any recent adjustments to analyst estimates for Best Buy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.12% downward. Best Buy currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Best Buy has a Forward P/E ratio of 12.35 right now. This signifies a discount in comparison to the average Forward P/E of 829.68 for its industry.
We can also see that BBY currently has a PEG ratio of 1.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Consumer Electronics industry had an average PEG ratio of 1.94.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 233, which puts it in the bottom 8% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Best Buy (BBY) Stock Sinks As Market Gains: Here's Why
Best Buy (BBY - Free Report) ended the recent trading session at $74.40, demonstrating a -0.09% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.03%. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 1.19%.
The the stock of consumer electronics retailer has fallen by 6.46% in the past month, lagging the Retail-Wholesale sector's gain of 0.23% and the S&P 500's loss of 1.57%.
Analysts and investors alike will be keeping a close eye on the performance of Best Buy in its upcoming earnings disclosure. The company is expected to report EPS of $1.08, down 6.09% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors should also take note of any recent adjustments to analyst estimates for Best Buy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.12% downward. Best Buy currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Best Buy has a Forward P/E ratio of 12.35 right now. This signifies a discount in comparison to the average Forward P/E of 829.68 for its industry.
We can also see that BBY currently has a PEG ratio of 1.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Consumer Electronics industry had an average PEG ratio of 1.94.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 233, which puts it in the bottom 8% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.