Best Buy (BBY) wins as the market goes down: what you need to know
Bis Buy (BBY) closed on the most recent trading day at $ 108.88, up 1.52% from the previous trading session. The change topped the S&P 500’s 0.69% loss on the day.
Prior to today, shares of the consumer electronics retailer had lost 3.68% in the past month, overtaking the 5.22% loss of the retail and wholesale sector and lagging behind the loss. 2.58% of the S&P 500 during this period.
Wall Street will be looking for BBY positivity as its next earnings report draws near. On that day, BBY is expected to report earnings of $ 1.91 per share, which would be down 7.28% year-over-year. Our most recent consensus estimate projects quarterly revenue of $ 11.6 billion, down 2.16% from the previous year.
For the full year, our consensus estimates from Zacks suggest analysts expect earnings of $ 9.98 per share and revenue of $ 51.75 billion. These totals would mark changes of + 26.17% and + 9.5%, respectively, from a year ago.
Investors might also notice recent changes in analyst estimates for BBY. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.
Based on our research, we believe that these estimate revisions are directly related to stock movements close to the team. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these rating changes into account and provides an actionable rating system.
Zacks’ ranking system ranges from # 1 (strong buy) to # 5 (strong sell). It has a remarkable, externally verified track record of success, with the No.1 stocks generating an average annual return of + 25% since 1988. Zacks Consensus’s EPS estimate rose 0.27% during the month latest. BBY currently sports a Zacks rank of # 1 (strong buy).
Digging into the valuation, BBY currently has a forward P / E ratio of 10.74. This valuation marks a premium compared to the average Forward P / E for its sector of 8.16.
It should also be noted that BBY currently has a PEG ratio of 1.42. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. Retail – Consumer Electronics currently had an average PEG ratio of 0.83 at yesterday’s close.
The Retail Trade – Consumer Electronics segment is part of the Retail-Wholesale industry. This industry currently has a Zacks Industry Rank of 27, which places it in the top 11% of all 250+ industries.
The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within the groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
To follow BBY in future trading sessions, be sure to use 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.