Best Buy (BBY) Stock Moves -0.39%: What You Should Know
Best Buy (BBY) closed the most recent trading day at $74.26, moving -0.39% from the previous trading session. This change was narrower than the S&P 500's 0.89% loss on the day. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.26%.
Prior to today's trading, shares of the consumer electronics retailer had gained 17.68% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.27% and the S&P 500's gain of 11.42% in that time.
Investors will be hoping for strength from Best Buy as it approaches its next earnings release, which is expected to be November 22, 2022. The company is expected to report EPS of $1.03, down 50.48% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.29 billion, down 13.6% from the year-ago period.
BBY's full-year Zacks Consensus Estimates are calling for earnings of $6.17 per share and revenue of $45.98 billion. These results would represent year-over-year changes of -38.36% and -11.17%, respectively.
Any recent changes to analyst estimates for Best Buy should also be noted by investors. These revisions help to show the ever-changing nature of near-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. 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 0.01% higher within the past month. Best Buy is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Best Buy currently has a Forward P/E ratio of 12.08. For comparison, its industry has an average Forward P/E of 12.08, which means Best Buy is trading at a no noticeable deviation to the group.
Also, we should mention that BBY has a PEG ratio of 0.68. 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. Retail - Consumer Electronics stocks are, on average, holding a PEG ratio of 0.68 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 57, which puts it in the top 23% 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.
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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