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Best Buy (BBY) Gains As Market Dips: What You Should Know
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In the latest trading session, Best Buy (BBY - Free Report) closed at $112.63, marking a +1.47% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.14%. At the same time, the Dow added 0.9%, and the tech-heavy Nasdaq lost 1.37%.
Prior to today's trading, shares of the consumer electronics retailer had lost 6.19% over the past month. This has lagged the Retail-Wholesale sector's loss of 1.79% and the S&P 500's gain of 2.25% in that time.
Wall Street will be looking for positivity from BBY as it approaches its next earnings report date. This is expected to be November 24, 2020. On that day, BBY is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 49.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.90 billion, up 11.62% from the year-ago period.
BBY's full-year Zacks Consensus Estimates are calling for earnings of $7.16 per share and revenue of $45.40 billion. These results would represent year-over-year changes of +17.96% and +4.03%, respectively.
Investors might also notice recent changes to analyst estimates for BBY. Recent revisions tend to reflect the latest 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.54% higher. BBY currently has a Zacks Rank of #2 (Buy).
In terms of valuation, BBY is currently trading at a Forward P/E ratio of 15.5. This valuation marks a discount compared to its industry's average Forward P/E of 16.05.
Investors should also note that BBY has a PEG ratio of 2.01 right now. 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. The Retail - Consumer Electronics was holding an average PEG ratio of 2.01 at yesterday's closing price.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% 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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Best Buy (BBY) Gains As Market Dips: What You Should Know
In the latest trading session, Best Buy (BBY - Free Report) closed at $112.63, marking a +1.47% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.14%. At the same time, the Dow added 0.9%, and the tech-heavy Nasdaq lost 1.37%.
Prior to today's trading, shares of the consumer electronics retailer had lost 6.19% over the past month. This has lagged the Retail-Wholesale sector's loss of 1.79% and the S&P 500's gain of 2.25% in that time.
Wall Street will be looking for positivity from BBY as it approaches its next earnings report date. This is expected to be November 24, 2020. On that day, BBY is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 49.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.90 billion, up 11.62% from the year-ago period.
BBY's full-year Zacks Consensus Estimates are calling for earnings of $7.16 per share and revenue of $45.40 billion. These results would represent year-over-year changes of +17.96% and +4.03%, respectively.
Investors might also notice recent changes to analyst estimates for BBY. Recent revisions tend to reflect the latest 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.54% higher. BBY currently has a Zacks Rank of #2 (Buy).
In terms of valuation, BBY is currently trading at a Forward P/E ratio of 15.5. This valuation marks a discount compared to its industry's average Forward P/E of 16.05.
Investors should also note that BBY has a PEG ratio of 2.01 right now. 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. The Retail - Consumer Electronics was holding an average PEG ratio of 2.01 at yesterday's closing price.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% 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.