Best Buy (BBY) Gains But Lags Market: What You Should Know
In the latest trading session, Best Buy (BBY) closed at $118.13, marking a +0.06% move from the previous day. The stock lagged the S&P 500's daily gain of 0.3%.
Prior to today's trading, shares of the consumer electronics retailer had gained 7.42% over the past month. This has outpaced the Retail-Wholesale sector's loss of 3.13% and the S&P 500's gain of 1.89% in that time.
BBY will be looking to display strength as it nears its next earnings release, which is expected to be August 24, 2021. In that report, analysts expect BBY to post earnings of $1.91 per share. This would mark year-over-year growth of 11.7%. Meanwhile, our latest consensus estimate is calling for revenue of $11.6 billion, up 17.05% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.53 per share and revenue of $49.56 billion. These totals would mark changes of +7.84% and +4.86%, respectively, from last year.
Any recent changes to analyst estimates for BBY should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate remained stagnant within the past month. BBY is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that BBY has a Forward P/E ratio of 13.85 right now. For comparison, its industry has an average Forward P/E of 13.85, which means BBY is trading at a no noticeable deviation to the group.
It is also worth noting that BBY currently has a PEG ratio of 1.67. 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 industry currently had an average PEG ratio of 1.02 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 40, putting it in the top 16% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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