In the latest trading session, Best Buy (BBY) closed at $87.18, marking a -0.15% move from the previous day. This change was narrower than the S&P 500's 0.71% loss on the day. Meanwhile, the Dow lost 0.81%, and the Nasdaq, a tech-heavy index, lost 0.79%.
Coming into today, shares of the consumer electronics retailer had gained 8.7% in the past month. In that same time, the Retail-Wholesale sector gained 4.83%, while the S&P 500 gained 4.77%.
BBY will be looking to display strength as it nears its next earnings release. On that day, BBY is projected to report earnings of $2.76 per share, which would represent year-over-year growth of 1.47%. Meanwhile, our latest consensus estimate is calling for revenue of $15.10 billion, up 2.04% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.94 per share and revenue of $43.54 billion, which would represent changes of +11.65% and +1.54%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. BBY currently has a Zacks Rank of #2 (Buy).
Investors should also note BBY's current valuation metrics, including its Forward P/E ratio of 14.69. Its industry sports an average Forward P/E of 14.69, so we one might conclude that BBY is trading at a no noticeable deviation comparatively.
Meanwhile, BBY's PEG ratio is currently 1.68. 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. The Retail - Consumer Electronics industry currently had an average PEG ratio of 0.78 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 197, putting it in the bottom 23% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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