In the latest trading session, Best Buy (BBY) closed at $87.18, marking a -0.15% move from the previous day. This change was narrower than the S&P 500’s 0.71% loss on the day. Meanwhile, the Dow lost 0.81%, and the Nasdaq, a tech-heavy index, lost 0.79%.
Coming into today, shares of the consumer electronics retailer had gained 8.7% in the past month. In that same time, the Retail-Wholesale sector gained 4.83%, while the S&P 500 gained 4.77%.
BBY will be looking to display strength as it nears its next earnings release. On that day, BBY is projected to report earnings of $2.76 per share, which would represent year-over-year growth of 1.47%. Meanwhile, our latest consensus estimate is calling for revenue of $15.10 billion, up 2.04% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.94 per share and revenue of $43.54 billion, which would represent changes of +11.65% and +1.54%, respectively, from the prior year.
Any recent changes to analyst estimates for BBY should also be noted by investors. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. BBY currently has a Zacks Rank of #2 (Buy).
Investors should also note BBY’s current valuation