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Best Buy (BBY) Gains As Market Dips: What You Should Know

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Best Buy (BBY - Free Report) closed at $73.48 in the latest trading session, marking a +0.26% move from the prior day. This move outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.26%.

Coming into today, shares of the consumer electronics retailer had lost 1.95% in the past month. In that same time, the Retail-Wholesale sector gained 0.34%, while the S&P 500 lost 0.19%.

Wall Street will be looking for positivity from BBY as it approaches its next earnings report date. This is expected to be May 23, 2019. In that report, analysts expect BBY to post earnings of $0.88 per share. This would mark year-over-year growth of 7.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.14 billion, up 0.36% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.66 per share and revenue of $43.61 billion. These totals would mark changes of +6.39% and +1.71%, respectively, from last year.

Any recent changes to analyst estimates for BBY should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% higher. BBY is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, BBY is holding a Forward P/E ratio of 12.94. For comparison, its industry has an average Forward P/E of 12.94, which means BBY is trading at a no noticeable deviation to the group.

We can also see that BBY currently has a PEG ratio of 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Consumer Electronics stocks are, on average, holding a PEG ratio of 1.02 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 229, putting it in the bottom 11% 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.

To follow BBY in the coming trading sessions, be sure to utilize Zacks.com.




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