Zacks Investment Research downgraded
Best Buy Company Inc
) to a Zacks Rank #5 (Strong Sell) on January 8.
Why the Downgrade?
Best Buy has witnessed sharp downward estimate revisions after
reporting disappointing third-quarter 2013 results. The company
has long been struggling with dwindling sales in key categories
including televisions, notebooks, digital imaging and gaming
devices, which in turn, is taking a toll on the company's same
store sales results.
Moreover, shares of this consumer electronics retailer have
been portraying a sharp downward trend in the past one year,
reflecting the company's sluggish performance.
On November 20, 2012, Best Buy reported third-quarter 2013
earnings per share of 3 cents, plummeting 94% from 47 cents
earned in the comparable prior-year quarter and missed the Zacks
Consensus Estimate of 12 cents.
Though the company's holiday sales were not as bad as
expected, Best Buy's total revenue for the 9 weeks period ended
Jan 5, 2013, came in at $12.8 billion, down from $12.9 billion
for the 9 weeks period ended Dec 31, 2011. Moreover,
comparable-store sales inched down 1.4% during the period.
The Zacks Consensus Estimate for the fourth quarter of 2013
and fiscal 2013, plunged 16.4% and 13.8%, respectively to $1.48
and $2.44 per share over the past 60 days. Moreover, for fiscal
2014, most of the estimates were revised downward over the last
60 days, lowering the Zacks Consensus Estimate by 20.5% to $2.17
The Other Stock to Consider
Not all the consumer electronics retailers are performing as
poorly as Best Buy.
), which holds a Zacks Rank #1 (Strong Buy) is worth
BEST BUY (BBY): Free Stock Analysis Report
CONNS INC (CONN): Free Stock Analysis Report
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