Yahoo Finance Best Buy (BBY) Stock Sinks As Market Gains: Here's Why
Best Buy (BBY) closed the latest trading day at $75, indicating a -0.07% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.32%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.35%.
Heading into today, shares of the consumer electronics retailer had lost 8.51% over the past month, lagging the Retail-Wholesale sector's loss of 1.39% and the S&P 500's loss of 2% in that time.
Market participants will be closely following the financial results of Best Buy in its upcoming release. The company is forecasted to report an EPS of $1.08, showcasing a 6.09% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.97 billion, indicating a 5.23% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.03 per share and a revenue of $42 billion, representing changes of -5.34% and -3.34%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Best Buy. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. Best Buy is currently a Zacks Rank #3 (Hold).
With respect to valuation, Best Buy is currently being traded at a Forward P/E ratio of 12.45. This expresses a discount compared to the average Forward P/E of 601.23 of its industry.
It is also worth noting that BBY currently has a PEG ratio of 1.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. BBY's industry had an average PEG ratio of 1.96 as of yesterday's close.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 243, putting it in the bottom 4% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
