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Best Buy Co., Inc. (BBY) Hits Fresh High: Is There Still Room to Run?
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Shares of Best Buy (BBY - Free Report) have been strong performers lately, with the stock up 22.2% over the past month. The stock hit a new 52-week high of $106.83 in the previous session. Best Buy has gained 58.8% since the start of the year compared to the 6.3% move for the Zacks Retail-Wholesale sector and the 56.5% return for the Zacks Retail - Consumer Electronics industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 27, 2026, Best Buy reported EPS of $1.47 versus consensus estimate of $1.37.
For the current fiscal year, Best Buy is expected to post earnings of $6.81 per share on $42.67 in revenues. This represents a 5.91% change in EPS on a 2.35% change in revenues. For the next fiscal year, the company is expected to earn $7.25 per share on $43.42 in revenues. This represents a year-over-year change of 6.51% and 1.76%, respectively.
Valuation Metrics
Best Buy may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Best Buy has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.6X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 6.1X. Additionally, the stock has a PEG ratio of 2.66. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Best Buy an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Best Buy currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Best Buy meets the list of requirements. Thus, it seems as though Best Buy shares could still be poised for more gains ahead.
View the Zacks #1 Rank List
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Best Buy Co., Inc. (BBY) Hits Fresh High: Is There Still Room to Run?
Shares of Best Buy (BBY - Free Report) have been strong performers lately, with the stock up 22.2% over the past month. The stock hit a new 52-week high of $106.83 in the previous session. Best Buy has gained 58.8% since the start of the year compared to the 6.3% move for the Zacks Retail-Wholesale sector and the 56.5% return for the Zacks Retail - Consumer Electronics industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 27, 2026, Best Buy reported EPS of $1.47 versus consensus estimate of $1.37.
For the current fiscal year, Best Buy is expected to post earnings of $6.81 per share on $42.67 in revenues. This represents a 5.91% change in EPS on a 2.35% change in revenues. For the next fiscal year, the company is expected to earn $7.25 per share on $43.42 in revenues. This represents a year-over-year change of 6.51% and 1.76%, respectively.
Valuation Metrics
Best Buy may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Best Buy has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.6X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 6.1X. Additionally, the stock has a PEG ratio of 2.66. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Best Buy an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Best Buy currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Best Buy meets the list of requirements. Thus, it seems as though Best Buy shares could still be poised for more gains ahead.