Best Buy Co., Inc.
) - the specialty retailer of consumer electronics- to beat
expectations when it reports third-quarter fiscal 2014 results on
Nov 19, 2013.
Why a Likely Positive Surprise?
Our proven model shows that Best Buy is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
Best Buy currently has an
of +9.09%. This is because the Most Accurate estimate stands at
12 cents, while the Zacks Consensus Estimate is pegged at 11
Zacks Rank #1 (Strong Buy):
Note that stocks with a Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings estimates. The
sell-rated stocks (Zacks Rank #4 and #5) should never be
considered going into an earnings announcement.
The combination of Best Buy's Zacks Rank #1 (Strong Buy) and
+9.09% ESP makes us very confident regarding a positive earnings
beat on Nov 19.
What is Driving the Better-than-Expected
Best Buy is undertaking a competitive pricing strategy and
making investments in areas such as online, mobile, the
multi-channel approach, optimum utilization of floor area and
refurbishment of its website (bestbuy.com) functionality. Best
Buy also initiated the "buy online - ship from store" endeavor.
The company in the last four quarters has outperformed the Zacks
Consensus Estimate by an average of 31.4%.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat:
), Earnings ESP of +1.11% and a Zacks Rank #1 (Strong Buy).
The J. M. Smucker Company
), Earnings ESP of +0.63% and a Zacks Rank #2 (Buy)
), Earnings ESP of +0.75% and a Zacks Rank #3 (Hold).
BEST BUY (BBY): Free Stock Analysis Report
HANESBRANDS INC (HBI): Free Stock Analysis
NORDSTROM INC (JWN): Free Stock Analysis
SMUCKER JM (SJM): Free Stock Analysis Report
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