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Best Buy (BBY) Gains But Lags Market: What You Should Know

Best Buy (BBY) closed at $63.67 in the latest trading session, marking a +0.52% move from the prior day. This change lagged the S&P 500's 2.59% gain on the day. Elsewhere, the Dow gained 2.66%, while the tech-heavy Nasdaq added 0.07%.

Prior to today's trading, shares of the consumer electronics retailer had lost 10.96% over the past month. This has lagged the Retail-Wholesale sector's loss of 8.35% and the S&P 500's loss of 9.22% in that time.

Best Buy will be looking to display strength as it nears its next earnings release. On that day, Best Buy is projected to report earnings of $1.03 per share, which would represent a year-over-year decline of 50.48%. Meanwhile, our latest consensus estimate is calling for revenue of $10.29 billion, down 13.6% from the prior-year quarter.

BBY's full-year Zacks Consensus Estimates are calling for earnings of $6.17 per share and revenue of $45.98 billion. These results would represent year-over-year changes of -38.36% and -11.17%, respectively.

Investors might also notice recent changes to analyst estimates for Best Buy. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.02% higher. Best Buy is currently a Zacks Rank #3 (Hold).

Investors should also note Best Buy's current valuation metrics, including its Forward P/E ratio of 10.26. This valuation marks a discount compared to its industry's average Forward P/E of 49.38.

Also, we should mention that BBY has a PEG ratio of 0.58. 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. Retail - Consumer Electronics stocks are, on average, holding a PEG ratio of 2.22 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 94, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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