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Best Buy (BBY): The Perfect Mix of Value and Rising Earnings Estimates?

Zacks Equity Research
·2 min read

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Best Buy Co., Inc. BBY.

Best Buy in Focus

BBY may be an interesting play thanks to its forward PE of 15.6, its P/S ratio of 0.7, and its decent dividend yield of 2%. These factors suggest that Best Buy is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that BBY has decent revenue metrics to back up its earnings.

 

Best Buy Co., Inc. PE Ratio (TTM)

Best Buy Co., Inc. PE Ratio (TTM)
Best Buy Co., Inc. PE Ratio (TTM)

Best Buy Co., Inc. pe-ratio-ttm | Best Buy Co., Inc. Quote

 

But before you think that Best Buy is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 38% in the past 60 days, thanks to nine upward revisions in the past two months compared to none lower.

This estimate strength is actually enough to push BBY to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank stocks here.

So really, Best Buy is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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To read this article on Zacks.com click here.
 
Zacks Investment Research