Best Buy (NYSE:BBY) finished at $69.91 in the most recent trading session, moving down 1.77% from the day before. This action was behind the 1.15% daily loss of the S&P 500. The tech-heavy Nasdaq lost 0.37%, while the Dow fell by 0.52%. Shares of the retailer of consumer electronics had decreased 1.97% in the previous month as of today. The S&P 500 lost 5.08% during that time, but the Retail-Wholesale sector only dropped 3.17%. When compared to some of its rivals on Monday, the stock displayed a mixed performance as Apple Inc. AAPL, dropped 1.48% to $144.87, Amazon.com Inc. AMZN, dropped 3.28% to $111.75, and Walmart Inc. WMT, 0.35 gained 0.04 % to $125.45. Trading volume (1.8 M) was 2.1 M below the 3.8 M 50-day average volume at the time of writing.
As Best Buy gets closer to the time for its next earnings release, Wall Street will be watching for encouraging signs. Best Buy is anticipated to disclose earnings of $1.89 per share on that day, a decrease of 36.58% from the prior year. The Zacks Consensus Estimate for revenue forecasts net sales of $10.85 billion, a decrease of 8.46% from the same time last year.
Zacks Consensus Estimates indicate that analysts anticipate earnings of $8.69 per share and revenue of $49.1 billion for the entire year. These sums represent changes of 13.19 and 5.14%, respectively, from the previous year. Investors should also take note of any recent adjustments to analyst forecasts for Best Buy. Recent changes frequently reflect the newest short-term commercial trends. As a result, optimistic estimate revisions show analyst confidence in the company’s operations and profitability.
These estimate adjustments, in our opinion, are closely tied to near-term stock movements, according to our analysis. Through the use of the Zacks Rank, investors can profit from this. This model offers an easy-to-use scoring system that takes these estimate modifications into account.
The Zacks Rank methodology, which ranks companies from #1 (Strong Buy) to #5 (Strong Sell), has an established track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Our consensus EPS prediction stayed stable over the previous 30 days. Zacks presently ranks Best Buy at #3 (Hold). A closer look at the value reveals that Best Buy now has a Forward P/E ratio of 8.19. Compared to the Forward P/E of 10.76 for its industry, this represents a bargain.
We can also observe that the PEG ratio for (NYSE:BBY) at this time is 0.97. The PEG ratio resembles the popular P/E ratio, but it additionally considers the company’s anticipated earnings growth rate. At yesterday’s close, the PEG ratio for the Retail – Consumer Electronics sector was 0.78 on average.
The Retail – Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 28% of all 250+ industries.
About Best Buy
Best Buy (NYSE:BBY) is a worldwide American retailer of consumer electronics with its headquarters in Richfield, Minnesota (official name: Best Buy Co. Inc.). It was first established by Richard M. Schulze and James Wheeler in 1966 as an audio specialty business called Sound of Music, and in 1983 it underwent a rebranding with a focus on consumer electronics.
Canada is the home of Best Buy, which also previously operated in China until February 2011 (when the group amalgamated with Five Star), and in Mexico until December 2020. (due to the effects of the COVID-19 pandemic). Additionally, the business ran till 2012. Pacific Sales, Magnolia Audio Video, and Geek Squad are some of its subsidiaries. In North America, Best Buy also runs the Best Buy Mobile and Insignia brands in addition to Five Star in China. In the US, Best Buy sells mobile phones from Sprint Corporation[3], AT&T Mobility, and Verizon Wireless. In Canada, providers like Bell Mobility, Rogers Wireless, Telus Mobility, its rival brands, and rival smaller carriers like SaskTel are all available.
Featured Image: Megapixl @Rawpixelimages
