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

Best Buy (BBY) closed the most recent trading day at $86.36, moving -1.14% from the previous trading session. This change lagged the S&P 500's daily gain of 2.39%. Meanwhile, the Dow gained 1.47%, and the Nasdaq, a tech-heavy index, added 0.91%.

Heading into today, shares of the consumer electronics retailer had lost 6.91% over the past month, outpacing the Retail-Wholesale sector's loss of 16.38% and the S&P 500's loss of 10.51% in that time.

Investors will be hoping for strength from Best Buy as it approaches its next earnings release, which is expected to be May 24, 2022. On that day, Best Buy is projected to report earnings of $1.56 per share, which would represent a year-over-year decline of 30.04%. Our most recent consensus estimate is calling for quarterly revenue of $10.34 billion, down 11.16% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.95 per share and revenue of $50.08 billion, which would represent changes of -10.59% and -3.24%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Best Buy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% lower. Best Buy is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Best Buy currently has a Forward P/E ratio of 9.76. For comparison, its industry has an average Forward P/E of 9.23, which means Best Buy is trading at a premium to the group.

Investors should also note that BBY has a PEG ratio of 1.03 right now. 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. Retail - Consumer Electronics stocks are, on average, holding a PEG ratio of 0.71 based on yesterday's closing prices.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 249, putting it in the bottom 2% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.