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Best Buy (BBY) Dips More Than Broader Markets: What You Should Know
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Best Buy (BBY - Free Report) closed at $112.42 in the latest trading session, marking a -1.46% move from the prior day. This change lagged the S&P 500's 0.96% loss on the day. At the same time, the Dow lost 0.48%, and the tech-heavy Nasdaq lost 2.22%.
Heading into today, shares of the consumer electronics retailer had gained 4.96% over the past month, outpacing the Retail-Wholesale sector's loss of 4.08% and the S&P 500's loss of 4.04% in that time.
BBY will be looking to display strength as it nears its next earnings release. In that report, analysts expect BBY to post earnings of $1.66 per share. This would mark year-over-year growth of 46.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.83 billion, up 10.93% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.12 per share and revenue of $45.31 billion. These totals would mark changes of +17.3% and +3.82%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BBY. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. BBY currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, BBY currently has a Forward P/E ratio of 16.02. Its industry sports an average Forward P/E of 16.02, so we one might conclude that BBY is trading at a no noticeable deviation comparatively.
Investors should also note that BBY has a PEG ratio of 2.37 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Consumer Electronics industry currently had an average PEG ratio of 1.53 as of yesterday's close.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Best Buy (BBY) Dips More Than Broader Markets: What You Should Know
Best Buy (BBY - Free Report) closed at $112.42 in the latest trading session, marking a -1.46% move from the prior day. This change lagged the S&P 500's 0.96% loss on the day. At the same time, the Dow lost 0.48%, and the tech-heavy Nasdaq lost 2.22%.
Heading into today, shares of the consumer electronics retailer had gained 4.96% over the past month, outpacing the Retail-Wholesale sector's loss of 4.08% and the S&P 500's loss of 4.04% in that time.
BBY will be looking to display strength as it nears its next earnings release. In that report, analysts expect BBY to post earnings of $1.66 per share. This would mark year-over-year growth of 46.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.83 billion, up 10.93% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.12 per share and revenue of $45.31 billion. These totals would mark changes of +17.3% and +3.82%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BBY. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. BBY currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, BBY currently has a Forward P/E ratio of 16.02. Its industry sports an average Forward P/E of 16.02, so we one might conclude that BBY is trading at a no noticeable deviation comparatively.
Investors should also note that BBY has a PEG ratio of 2.37 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Consumer Electronics industry currently had an average PEG ratio of 1.53 as of yesterday's close.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.