Best Buy (BBY) closed at $97.64 in the latest trading session, marking a +1.6% move from the prior day. This move lagged the S&P 500's daily gain of 2.44%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 0.28%.
Coming into today, shares of the consumer electronics retailer had lost 5.37% in the past month. In that same time, the Retail-Wholesale sector lost 13.11%, while the S&P 500 lost 9.65%.
Investors will be hoping for strength from Best Buy as it approaches its next earnings release. The company is expected to report EPS of $2.81, down 19.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.73 billion, down 1.25% from the year-ago period.
BBY's full-year Zacks Consensus Estimates are calling for earnings of $10.09 per share and revenue of $52.12 billion. These results would represent year-over-year changes of +27.56% and +10.27%, respectively.
Investors might also notice recent changes to analyst estimates for Best Buy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. Best Buy is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Best Buy has a Forward P/E ratio of 9.53 right now. This represents a premium compared to its industry's average Forward P/E of 7.8.
Meanwhile, BBY's PEG ratio is currently 1.05. 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. BBY's industry had an average PEG ratio of 0.66 as of yesterday's close.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 251, which puts it in the bottom 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
