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Best Buy Turns to Next Growth Chapter, Focus on Healthcare
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Best Buy Co., Inc. (BBY - Free Report) is aiming high, banking on plans to exploit areas of potential to the fullest. The key growth initiatives underlined by the company are Best Buy Health and supply chain transformation. Naturally, it is committed toward strengthening partnerships with vendors, focusing on offering services and solutions to meet varied customer needs, and optimizing costs. These endeavors are expected to lift the company's top line and overall profitability.
The company’s long-term financial goal is the testimony to the same. Management now envisions enterprise revenue of approximately $50 billion with adjusted operating income rate of 5% by 2025. The consumer electronics retailer also intends to reduce costs by about $1 billion by the said period. The revenue target looks achievable, when compared with fiscal 2020’s revenue projection of $43.1-$43.6 billion.
Notably, under the next phase of its “Building the New Blue” program called “Building the New Blue: Chapter Two”, Best Buy’s top most priority will be to pursue growth opportunities, better execution in key areas, cost containment, and investing in people and systems.
It is making a significant headway into healthcare technology business by undertaking strategic buyouts in the space. The series of purchases include, GreatCall, a major connected health technology company. It also acquired Critical Signal Technologies that provides personal emergency response systems and telehealth monitoring services for seniors at home. The company acquired BioSensics, a provider of wearable sensor technologies for clinical research and medical applications.
According to a report from Morgan Stanley, Best Buy is well poised to generate revenue of about $11-$46 billion from its commercial health business in the long run.
Meanwhile, the company has been progressing well with programs like Total Tech Support, which provides support for fixing computers, laptops, appliances, smart home devices and connected devices. Further, Best Buy expanded its In-Home Advisor program to core U.S. markets. The program includes advisors, who guide customers to find out the right technology solutions and provide free in-home consultations.
All said, the company’s long-term endeavors look impressive. Best Buy CEO Corie Barry stated, “We are excited about what we have accomplished so far, and we believe we will continue to enrich our customers’ lives through technology and unlock profitable growth as we execute on the next chapter of this strategy.”
Shares of this Zacks Rank #3 (Hold) company has surged 26.1% so far in the year, outperforming the industry’s growth of 22.8%.
Fossil Group (FOSL - Free Report) has an average positive earnings surprise of 79% in the trailing four quarters. The company carries a Zacks Rank #2 (Buy).
Canada Goose Holdings (GOOS - Free Report) has a long-term earnings growth rate of 28.5% and a Zacks Rank #2.
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Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Best Buy Turns to Next Growth Chapter, Focus on Healthcare
Best Buy Co., Inc. (BBY - Free Report) is aiming high, banking on plans to exploit areas of potential to the fullest. The key growth initiatives underlined by the company are Best Buy Health and supply chain transformation. Naturally, it is committed toward strengthening partnerships with vendors, focusing on offering services and solutions to meet varied customer needs, and optimizing costs. These endeavors are expected to lift the company's top line and overall profitability.
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The company’s long-term financial goal is the testimony to the same. Management now envisions enterprise revenue of approximately $50 billion with adjusted operating income rate of 5% by 2025. The consumer electronics retailer also intends to reduce costs by about $1 billion by the said period. The revenue target looks achievable, when compared with fiscal 2020’s revenue projection of $43.1-$43.6 billion.
Notably, under the next phase of its “Building the New Blue” program called “Building the New Blue: Chapter Two”, Best Buy’s top most priority will be to pursue growth opportunities, better execution in key areas, cost containment, and investing in people and systems.
It is making a significant headway into healthcare technology business by undertaking strategic buyouts in the space. The series of purchases include, GreatCall, a major connected health technology company. It also acquired Critical Signal Technologies that provides personal emergency response systems and telehealth monitoring services for seniors at home. The company acquired BioSensics, a provider of wearable sensor technologies for clinical research and medical applications.
According to a report from Morgan Stanley, Best Buy is well poised to generate revenue of about $11-$46 billion from its commercial health business in the long run.
Meanwhile, the company has been progressing well with programs like Total Tech Support, which provides support for fixing computers, laptops, appliances, smart home devices and connected devices. Further, Best Buy expanded its In-Home Advisor program to core U.S. markets. The program includes advisors, who guide customers to find out the right technology solutions and provide free in-home consultations.
All said, the company’s long-term endeavors look impressive. Best Buy CEO Corie Barry stated, “We are excited about what we have accomplished so far, and we believe we will continue to enrich our customers’ lives through technology and unlock profitable growth as we execute on the next chapter of this strategy.”
Shares of this Zacks Rank #3 (Hold) company has surged 26.1% so far in the year, outperforming the industry’s growth of 22.8%.
3 Stocks to Consider
Boot Barn Holdings (BOOT - Free Report) has a long-term earnings growth rate of 15% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fossil Group (FOSL - Free Report) has an average positive earnings surprise of 79% in the trailing four quarters. The company carries a Zacks Rank #2 (Buy).
Canada Goose Holdings (GOOS - Free Report) has a long-term earnings growth rate of 28.5% and a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>