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Best Buy Co
(NYSE:BBY)
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Rating:69Neutral
Price Target:
$102.00
▲(19.59% Upside)
Action:Reiterated
Date:08/27/26
BBY earns a solid but not top-tier score driven by improving cash flow and better recent operating performance, reinforced by a constructive technical uptrend. The raised FY2027 guidance and positive strategic momentum (Ads/Marketplace) further support the outlook. The main constraints are the multi-year backdrop of lower revenue and thinner margins versus FY2022 and a still-leveraged balance sheet in a low-margin retail model.
Positive Factors
Raised guidance and improving operating trends
The higher FY2027 outlook signals that management sees improving demand and operating leverage extending beyond one quarter. Expected comparable-sales growth, gross-margin expansion and stronger operating income provide a more durable earnings foundation while supporting continued investment in strategic growth initiatives.
Negative Factors
Long-term revenue and margin erosion
The multi-year decline in revenue and net margin indicates that Best Buy is still rebuilding earnings power after earlier pressure. Its low-margin retail model leaves limited room for execution errors, and sustained margin recovery will be necessary to offset the smaller revenue base.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised guidance and improving operating trends
The higher FY2027 outlook signals that management sees improving demand and operating leverage extending beyond one quarter. Expected comparable-sales growth, gross-margin expansion and stronger operating income provide a more durable earnings foundation while supporting continued investment in strategic growth initiatives.
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
$18.24B
Dividend Yield4.4%
Average Volume (3M)3.51M
Price to Earnings (P/E)14.4
Beta (1Y)1.08
Revenue Growth1.45%
EPS Growth65.55%
CountryUS
Employees82,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)6.02
Shares Outstanding209,727,690
10 Day Avg. Volume3,022,847
30 Day Avg. Volume3,507,122
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 Cap1.08
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit2.07
Enterprise Value/Ebitda7.67
Forecast
1Y Price Target
$87.79Price Target Upside2.93% Upside
Rating ConsensusHold
Number of Analyst Covering16
EPS Forecast (FY)6.81
Revenue Forecast (FY)$42.69B
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 makes money primarily by selling consumer electronics and related products to consumers through its retail stores and e-commerce platforms. A large portion of revenue comes from merchandise sales across categories such as computing, mobil...
Best Buy Co Earnings Call Summary
Earnings Call Date:Aug 27, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call communicated a clear improvement in top-line trends, margin expansion and multiple strategic growth drivers (Marketplace, Ads, membership, AI initiatives and emerging categories) and the company raised full-year guidance. Offsetting items include higher SG&A (notably incentive compensation), international revenue weakness, computing unit softness amid higher ASPs, inventory increases and targeted investments that pressure product margins. On balance, the positives — beat results, raised guidance, profitable new revenue streams and category momentum — materially outweigh the challenges.Positive Updates
Comparable Sales and Revenue Beat
Enterprise comparable sales grew 4.1% YoY, exceeding prior guidance (~1%). Revenue was $9.8 billion, up 3.6% versus last year.
Negative Updates
Increased SG&A and Incentive Compensation
Domestic adjusted SG&A rose by $94M YoY, primarily due to higher compensation (incentive comp), Marketplace and Ads expenses, and higher advertising. Incentive compensation increased ~$130M versus initial plan, with an expected ~$70M increase in the back half.
Read all updates
Q2-2027 Updates
Positive
Negative
Comparable Sales and Revenue Beat
Enterprise comparable sales grew 4.1% YoY, exceeding prior guidance (~1%). Revenue was $9.8 billion, up 3.6% versus last year.
Read all positive updates
Company Guidance
Best Buy raised its full‑year fiscal 2027 outlook to revenue of $42.3–42.8 billion, comparable sales growth of 1.9%–3.0%, an adjusted operating income rate of 4.4%–4.5%, adjusted diluted EPS of $6.70–$6.90, an adjusted effective tax rate of ~25.5% and capital expenditures of about $750 million; management expects H2 comparable sales of 1%–3% (Q3 comps 1%–3%) with Q3 adjusted operating income of ~4.1%–4.2% (10–20 bps above prior year), annual gross profit rate expansion of ~30–40 bps (driven by Best Buy Ads and U.S. Marketplace and assuming similar IEEPA tariff refunds in Q3), adjusted SG&A up ~20 bps as a percent of sales (including incentive compensation ~ $130M higher year‑over‑year, with ~ $70M incremental in the back half at the high end), Marketplace GMV now expected ≈ $1.3B for the year (Q2 domestic GMV ≈ $300M), Ads on track for ~10% growth on top of ~$900M collections last year, and August month‑to‑date comps running at the high end of the H2 range.Best Buy Co Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.20B | 41.69B | 41.53B | 43.45B | 46.30B | 51.76B |
| Gross Profit | 9.57B | 9.37B | 9.38B | 9.60B | 9.91B | 11.64B |
| EBITDA | 2.58B | 2.28B | 2.21B | 2.60B | 2.74B | 3.92B |
| Net Income | 1.27B | 1.07B | 927.00M | 1.24B | 1.42B | 2.45B |
Balance Sheet | ||||||
| Total Assets | 16.11B | 14.67B | 14.78B | 14.97B | 15.80B | 17.50B |
| Cash, Cash Equivalents and Short-Term Investments | 2.25B | 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 | 12.92B | 11.71B | 11.97B | 11.91B | 13.01B | 14.48B |
| Stockholders Equity | 3.18B | 2.96B | 2.81B | 3.05B | 2.79B | 3.02B |
Cash Flow | ||||||
| Free Cash Flow | 1.77B | 1.26B | 1.39B | 675.00M | 894.00M | 2.52B |
| Operating Cash Flow | 2.48B | 1.96B | 2.10B | 1.47B | 1.82B | 3.25B |
| Investing Cash Flow | -700.00M | -730.00M | -704.00M | -781.00M | -962.00M | -1.37B |
| Financing Cash Flow | -952.00M | -1.08B | -1.31B | -1.14B | -1.81B | -4.30B |
Best Buy Co Technical Analysis
Positive
85.29
Price Trends
86.87
Positive
81.73
Positive
71.92
Positive
Market Momentum
-0.31
Positive
47.20
Neutral
55.31
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 85.29 is below the 20-day moving average (MA) of 89.67, below the 50-day MA of 86.87, and above the 200-day MA of 71.92, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 55.31 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.80T | 20.60 | 30.50% | ― | 15.77% | 88.63% | |
72 Outperform | $51.02B | 23.21 | 48.28% | 1.06% | 15.18% | 7.28% | |
69 Neutral | $18.24B | 14.45 | 42.82% | 4.40% | 1.45% | 65.55% | |
69 Neutral | $13.74B | 13.68 | 15.72% | 13.87% | -7.71% | 145.76% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
46 Neutral | $238.05M | 25.41 | 5.52% | ― | ― | ― |
* Consumer Cyclical Sector Average
BBY
Best Buy Co
86.99
13.68
18.67%
AMZN
Amazon
259.53
43.14
19.94%
NEGG
Newegg Commerce
11.35
-38.07
-77.03%
EBAY
eBay
114.65
24.74
27.51%
GME
GameStop
27.23
4.02
17.32%
Best Buy Co Corporate Events
Business Operations and StrategyExecutive/Board Changes
Best Buy names Anne Bramman CFO amid leadership transition
Positive
Aug 3, 2026
Best Buy announced on August 3, 2026, that veteran Fortune 500 executive Anne Bramman has been appointed executive vice president and chief financial officer, effective August 19, 2026, reporting to incoming CEO Jason Bonfig as part of the company...
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.