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Best Buy (BBY) Gains But Lags Market: What You Should Know
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Best Buy (BBY - Free Report) closed the most recent trading day at $93.58, moving +0.59% from the previous trading session. This move lagged the S&P 500's daily gain of 2.48%. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the consumer electronics retailer had lost 3.53% in the past month. In that same time, the Retail-Wholesale sector lost 8.14%, while the S&P 500 lost 7.81%.
Best Buy will be looking to display strength as it nears its next earnings release, which is expected to be May 24, 2022. On that day, Best Buy is projected to report earnings of $1.57 per share, which would represent 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 recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Best Buy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Best Buy is currently trading at a Forward P/E ratio of 10.37. For comparison, its industry has an average Forward P/E of 9.93, which means Best Buy is trading at a premium to the group.
Also, we should mention that BBY has a PEG ratio of 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. The Retail - Consumer Electronics was holding an average PEG ratio of 0.75 at yesterday's closing price.
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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Best Buy (BBY) Gains But Lags Market: What You Should Know
Best Buy (BBY - Free Report) closed the most recent trading day at $93.58, moving +0.59% from the previous trading session. This move lagged the S&P 500's daily gain of 2.48%. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the consumer electronics retailer had lost 3.53% in the past month. In that same time, the Retail-Wholesale sector lost 8.14%, while the S&P 500 lost 7.81%.
Best Buy will be looking to display strength as it nears its next earnings release, which is expected to be May 24, 2022. On that day, Best Buy is projected to report earnings of $1.57 per share, which would represent 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 recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Best Buy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Best Buy is currently trading at a Forward P/E ratio of 10.37. For comparison, its industry has an average Forward P/E of 9.93, which means Best Buy is trading at a premium to the group.
Also, we should mention that BBY has a PEG ratio of 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. The Retail - Consumer Electronics was holding an average PEG ratio of 0.75 at yesterday's closing price.
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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.