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Best Buy (BBY) Stock Sinks As Market Gains: What You Should Know

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Best Buy (BBY) closed at $113.74 in the latest trading session, marking a -1.04% move from the prior day. This change lagged the S&P 500's 0.36% gain on the day. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq added 0.69%.

Heading into today, shares of the consumer electronics retailer had gained 12.07% over the past month, outpacing the Retail-Wholesale sector's gain of 2.36% and the S&P 500's gain of 4.27% in that time.

Wall Street will be looking for positivity from BBY as it approaches its next earnings report date. In that report, analysts expect BBY to post earnings of $3.46 per share. This would mark year-over-year growth of 19.31%. Meanwhile, our latest consensus estimate is calling for revenue of $17.20 billion, up 13.17% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.90 per share and revenue of $47.59 billion, which would represent changes of +30.15% and +9.05%, respectively, from the prior year.

Any recent changes to analyst estimates for BBY should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. BBY is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, BBY currently has a Forward P/E ratio of 14.56. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 14.56.

It is also worth noting that BBY currently has a PEG ratio of 1.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Consumer Electronics stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 15% 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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