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Best Buy (BBY) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Best Buy (BBY - Free Report) closed at $93.03, marking a +0.22% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.11%.
Heading into today, shares of the consumer electronics retailer had lost 7.86% over the past month, outpacing the Retail-Wholesale sector's loss of 8.18% and the S&P 500's loss of 8.08% in that time.
Best Buy will be looking to display strength as it nears its next earnings release, which is expected to be May 24, 2022. In that report, analysts expect Best Buy to post earnings of $1.57 per share. This would mark a year-over-year decline of 29.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.34 billion, down 11.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.97 per share and revenue of $50.08 billion, which would represent changes of -10.39% and -3.24%, respectively, from the prior year.
Any recent changes to analyst estimates for Best Buy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Best Buy is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Best Buy is holding a Forward P/E ratio of 10.35. This represents a premium compared to its industry's average Forward P/E of 9.93.
Meanwhile, BBY's PEG ratio is currently 1.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BBY's industry had an average PEG ratio of 0.75 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 241, which puts it in the bottom 5% 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Best Buy (BBY - Free Report) closed at $93.03, marking a +0.22% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.11%.
Heading into today, shares of the consumer electronics retailer had lost 7.86% over the past month, outpacing the Retail-Wholesale sector's loss of 8.18% and the S&P 500's loss of 8.08% in that time.
Best Buy will be looking to display strength as it nears its next earnings release, which is expected to be May 24, 2022. In that report, analysts expect Best Buy to post earnings of $1.57 per share. This would mark a year-over-year decline of 29.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.34 billion, down 11.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.97 per share and revenue of $50.08 billion, which would represent changes of -10.39% and -3.24%, respectively, from the prior year.
Any recent changes to analyst estimates for Best Buy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Best Buy is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Best Buy is holding a Forward P/E ratio of 10.35. This represents a premium compared to its industry's average Forward P/E of 9.93.
Meanwhile, BBY's PEG ratio is currently 1.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BBY's industry had an average PEG ratio of 0.75 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 241, which puts it in the bottom 5% 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.