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Best Buy (BBY) Stock Moves -0.37%: What You Should Know

Best Buy (BBY) closed at $102.50 in the latest trading session, marking a -0.37% move from the prior day. This change was narrower than the S&P 500's 0.41% loss on the day. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 0.15%.

Heading into today, shares of the consumer electronics retailer had lost 1.44% over the past month, outpacing the Retail-Wholesale sector's loss of 2.12% and lagging the S&P 500's gain of 2.36% 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 $2.82 per share, which would represent a year-over-year decline of 18.97%. Meanwhile, our latest consensus estimate is calling for revenue of $16.79 billion, down 0.88% from the prior-year quarter.

BBY's full-year Zacks Consensus Estimates are calling for earnings of $10.10 per share and revenue of $52.17 billion. These results would represent year-over-year changes of +27.69% and +10.39%, respectively.

Investors should also note any 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.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. Best Buy is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Best Buy has a Forward P/E ratio of 10.19 right now. This represents a premium compared to its industry's average Forward P/E of 8.45.

Also, we should mention that BBY has a PEG ratio of 1.13. 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 industry currently had an average PEG ratio of 0.71 as of yesterday's close.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 246, putting it in the bottom 4% 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.


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