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Best Buy Co
(NYSE:BBY)
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Rating:67Neutral
Price Target:
$82.00
▲(24.75% Upside)
Action:Reiterated
Date:06/18/26
BBY scores highest on improving execution and momentum (price above key moving averages; positive MACD) and shareholder-friendly valuation (P/E ~13.9 and ~5.0% yield). The score is held back by structurally thin retail margins, revenue still below 2022 levels, and elevated balance-sheet leverage, with near-term risks from higher SG&A investment and inventory/working-capital swings.
Positive Factors
Retail Media & Marketplace Growth
Rapid growth in Best Buy Ads and Marketplace represents a structural shift from low‑margin hardware to higher‑margin, recurring commerce and ad revenue. Sustainable monetization of customer traffic increases gross profit mix, funds investments and reduces reliance on cyclical product sales over the medium term.
Negative Factors
Elevated Leverage
High debt relative to equity makes the company more sensitive to demand slowdowns or margin compression; interest obligations and limited cushion restrict the pace of opportunistic investments or larger buybacks, and increase refinancing risk if macro conditions tighten over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Retail Media & Marketplace Growth
Rapid growth in Best Buy Ads and Marketplace represents a structural shift from low‑margin hardware to higher‑margin, recurring commerce and ad revenue. Sustainable monetization of customer traffic increases gross profit mix, funds investments and reduces reliance on cyclical product sales over the medium term.
Read all positive factors
Best Buy Co Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyBest Buy Co (BBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.38B
Dividend Yield5.46%
Average Volume (3M)4.64M
Price to Earnings (P/E)14.4
Beta (1Y)1.09
Revenue Growth0.99%
EPS Growth31.91%
CountryUS
Employees85,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)5.41
Shares Outstanding210,767,120
10 Day Avg. Volume3,927,744
30 Day Avg. Volume4,639,748
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)4.63
Price to Sales (P/S)0.33
P/FCF Ratio10.92
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit1.89
Enterprise Value/Ebitda7.32
Forecast
1Y Price Target
$76.31Price Target Upside16.09% Upside
Rating ConsensusHold
Number of Analyst Covering17
EPS Forecast (FY)6.54
Revenue Forecast (FY)$41.96B
Best Buy Co Business Overview & Revenue Model
Company Description
Best Buy Co., Inc. operates as a prominent technology retailer across the United States and Canada. Its business structure is segmented into Domestic and International operations. The company's extensive product selection includes a wide array of ...
How the Company Makes Money
Best Buy primarily makes money by selling consumer electronics and appliances to customers through its retail stores and e-commerce platforms, recognizing revenue from product sales across categories such as computing and mobile phones, consumer e...
Best Buy Co Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 01, 2026
Earnings Call Sentiment Positive
The call portrayed a company executing well on strategic initiatives (Best Buy Ads, Marketplace, new store formats, membership enhancements) with modest top-line growth, margin expansion, and an EPS beat. Operational wins (faster fulfillment, category momentum in gaming/computing/mobile, international growth) and maintained fiscal guidance are positives. Challenges include pressured appliance sales, some product margin headwinds (notably internationally), memory-related ASP/unit risk, a strategic inventory build, and a tough Q2 comparative cadence (Switch 2 lap). Overall, the positive execution and outlook for new profit streams and product launches outweigh the near-term headwinds.Positive Updates
Comparable Sales and Revenue Beat Expectations
Enterprise comparable sales grew 2% year-over-year, above the prior outlook (~1%). Enterprise revenue was $8.9 billion, up 1.9% versus last year.
Negative Updates
Appliances Under Pressure
Appliances sales continued to be pressured and declined versus last year; management cited a stagnant housing market and competitive retail environment, though month-to-date trends showed improvement.
Read all updates
Q1-2027 Updates
Positive
Negative
Comparable Sales and Revenue Beat Expectations
Enterprise comparable sales grew 2% year-over-year, above the prior outlook (~1%). Enterprise revenue was $8.9 billion, up 1.9% versus last year.
Read all positive updates
Company Guidance
Best Buy maintained its FY‑27 guidance: revenue $41.2B–$42.1B, comparable sales down 1% to up 1%, adjusted operating income rate 4.3%–4.4%, adjusted diluted EPS $6.30–$6.60, adjusted effective tax rate ~25.5%, capital expenditures ~ $750M and planned share repurchases of ~ $300M. Management expects gross profit rate expansion of ~30 basis points driven by Best Buy Ads and the U.S. Marketplace, with ad collections targeted to grow ~10% to nearly $1B and U.S. Marketplace GMV expected to be at least $1.2B; SG&A will increase to support ads/marketplace (including ~ $30M higher incentive compensation). For Q2 they forecast comparable sales of about 1% (month‑to‑date May is high single‑digits) and an operating income rate of ~3.9% (flat YoY).Best Buy Co Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
52
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.86B | 41.69B | 41.53B | 43.45B | 46.30B | 51.76B |
| Gross Profit | 9.42B | 9.37B | 9.38B | 9.60B | 9.91B | 11.64B |
| EBITDA | 2.43B | 2.28B | 2.21B | 2.60B | 2.74B | 3.92B |
| Net Income | 1.14B | 1.07B | 927.00M | 1.24B | 1.42B | 2.45B |
Balance Sheet | ||||||
| Total Assets | 14.89B | 14.67B | 14.78B | 14.97B | 15.80B | 17.50B |
| Cash, Cash Equivalents and Short-Term Investments | 1.75B | 1.74B | 1.58B | 1.45B | 1.87B | 2.94B |
| Total Debt | 4.13B | 4.13B | 4.05B | 3.98B | 3.98B | 3.94B |
| Total Liabilities | 11.81B | 11.71B | 11.97B | 11.91B | 13.01B | 14.48B |
| Stockholders Equity | 3.08B | 2.96B | 2.81B | 3.05B | 2.79B | 3.02B |
Cash Flow | ||||||
| Free Cash Flow | 1.60B | 1.26B | 1.39B | 675.00M | 894.00M | 2.52B |
| Operating Cash Flow | 2.30B | 1.96B | 2.10B | 1.47B | 1.82B | 3.25B |
| Investing Cash Flow | -724.00M | -730.00M | -704.00M | -781.00M | -962.00M | -1.37B |
| Financing Cash Flow | -980.00M | -1.08B | -1.31B | -1.14B | -1.81B | -4.30B |
Best Buy Co Technical Analysis
Positive
65.73
Price Trends
65.85
Positive
64.36
Positive
67.91
Positive
Market Momentum
3.25
Positive
64.52
Neutral
70.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBY, the sentiment is Positive. The current price of 65.73 is below the 20-day moving average (MA) of 74.55, below the 50-day MA of 65.85, and below the 200-day MA of 67.91, indicating a bullish trend. The MACD of 3.25 indicates Positive momentum. The RSI at 64.52 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBY.
Best Buy Co Risk Analysis
Best Buy Co disclosed 30 risk factors in its most recent earnings report. Best Buy Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Best Buy Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $28.16B | 26.50 | 53.29% | 1.37% | 1.30% | 1.14% | |
71 Outperform | $47.89B | 24.62 | 44.12% | 1.38% | 13.15% | 5.89% | |
67 Neutral | $16.38B | 14.35 | 40.05% | 5.46% | 0.99% | 31.91% | |
67 Neutral | $7.41B | 27.56 | -25.47% | ― | 1.78% | 75.71% | |
62 Neutral | $7.59B | 41.32 | 44.82% | ― | 6.14% | -32.48% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $9.76B | 12.96 | 14.03% | ― | 1.61% | 260.81% |
* Consumer Cyclical Sector Average
BBY
Best Buy Co
77.64
10.72
16.02%
EBAY
eBay
110.80
35.66
47.47%
GME
GameStop
22.03
-1.65
-6.97%
WSM
Williams-Sonoma
240.17
73.42
44.03%
ETSY
Etsy
79.66
28.30
55.10%
CHWY
Chewy
19.42
-22.44
-53.61%
Best Buy Co Corporate Events
Executive/Board ChangesShareholder Meetings
Best Buy shareholders back leadership, auditor and pay plan
Positive
Jun 17, 2026
On June 12, 2026, Best Buy held its Regular Meeting of Shareholders, at which all nominated directors were elected to one-year terms and a quorum was achieved with over 192 million shares represented. Shareholders also ratified Deloitte Touche LL...
Business Operations and StrategyExecutive/Board Changes
Best Buy Announces CEO Succession and Leadership Transition
Positive
Apr 22, 2026
On April 22, 2026, Best Buy announced a CEO succession plan under which current Chief Executive Officer Corie Barry will step down from her CEO and board roles at the end of the day on Oct. 31, 2026, after seven years at the helm. Jason Bonfig, cu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.