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

In the latest trading session, Best Buy (BBY) closed at $76.99, marking a -1.28% move from the previous day. This move lagged the S&P 500's daily gain of 1.42%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq lost 0.07%.

Coming into today, shares of the consumer electronics retailer had gained 19.64% in the past month. In that same time, the Retail-Wholesale sector gained 7%, while the S&P 500 gained 6.69%.

Investors will be hoping for strength from Best Buy as it approaches its next earnings release. The company is expected to report EPS of $1.89, down 36.58% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.57 billion, down 10.78% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.66 per share and revenue of $47.34 billion, which would represent changes of -13.49% and -8.54%, respectively, from the prior year.

Any recent changes to analyst estimates for Best Buy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% lower. Best Buy is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Best Buy's current valuation metrics, including its Forward P/E ratio of 9.01. For comparison, its industry has an average Forward P/E of 11.48, which means Best Buy is trading at a discount to the group.

Investors should also note that BBY has a PEG ratio of 1.07 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Consumer Electronics was holding an average PEG ratio of 0.84 at yesterday's closing price.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.

To follow BBY in the coming trading sessions, be sure to utilize Zacks.com.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.