In the latest trading session, Best Buy (BBY) closed at $118.44, marking a +0.19% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.66%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.8%.
Prior to today's trading, shares of the consumer electronics retailer had gained 9.49% over the past month. This has outpaced the Retail-Wholesale sector's gain of 9.09% and the S&P 500's gain of 5.22% in that time.
BBY will be looking to display strength as it nears its next earnings release. On that day, BBY is projected to report earnings of $1.66 per share, which would represent year-over-year growth of 46.9%. Our most recent consensus estimate is calling for quarterly revenue of $10.83 billion, up 10.93% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.12 per share and revenue of $45.31 billion. These totals would mark changes of +17.3% and +3.82%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for BBY. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, BBY is currently trading at a Forward P/E ratio of 16.6. Its industry sports an average Forward P/E of 16.6, so we one might conclude that BBY is trading at a no noticeable deviation comparatively.
Meanwhile, BBY's PEG ratio is currently 2.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. BBY's industry had an average PEG ratio of 1.43 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 32, putting it in the top 13% 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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