Best Buy (BBY) Stock Moves -1.71%: What You Should Know
Best Buy (BBY) closed the most recent trading day at $100.47, moving -1.71% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.81%. At the same time, the Dow lost 1.47%, and the tech-heavy Nasdaq lost 0.51%.
Prior to today's trading, shares of the consumer electronics retailer had lost 0.45% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 2.51% and the S&P 500's loss of 1.84% in that time.
Best Buy will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2022. On that day, Best Buy is projected to report earnings of $2.81 per share, which would represent a year-over-year decline of 19.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.73 billion, down 1.25% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Best Buy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. Best Buy is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note Best Buy's current valuation metrics, including its Forward P/E ratio of 10.71. For comparison, its industry has an average Forward P/E of 10.71, which means Best Buy is trading at a no noticeable deviation to the group.
We can also see that BBY currently has a PEG ratio of 1.18. 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. Retail - Consumer Electronics stocks are, on average, holding a PEG ratio of 0.82 based on yesterday's closing prices.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 248, which puts it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
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