Looking for a stock that might be in a good position to beat
earnings at its next report? Consider
Best Buy Co., Inc.
), a firm in the retail electronics industry, which could be a
great candidate for another beat.
This company has seen a nice streak of beating earnings estimates,
especially when looking at the previous two reports. In fact, in
these reports, BBY has beaten estimates by at least 60% in both
cases, suggesting it has a nice short-term history of crushing
Earnings in Focus
Two quarters ago, BBY expected to earn 12 cents per share, while it
actually produced earnings of 32 cents per share, a beat of 166.7%.
Meanwhile, for the most recent quarter, the company looked to
deliver earnings of 11 cents a share, when it actually saw earnings
of 18 cents per share instead, representing a 63.6% positive
Thanks in part to this history, recent estimates have been moving
higher for Best Buy. In fact, the
for BBY is positive, which is a great sign of a coming beat.
After all, the Zacks Earnings ESP compares the most accurate
estimate to the broad consensus, looking to find stocks that have
seen big revisions as of late, suggesting that analysts have
recently become more bullish on the company's earnings prospects.
This is the case for BBY, as the firm currently has a Zacks
Earnings ESP of 1.85%, so another beat could be around the corner.
This is particularly true when you consider that BBY has a great
Zacks Rank #2 (Buy), which can be a harbinger of outperformance and
a signal for a strong earnings profile. And when you add this solid
Zacks Rank to a positive Earnings ESP,
a positive earnings surprise happens nearly 70%
, so it seems pretty likely that BBY could see another beat at its
next report, especially if recent trends are any guide.
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