BBY Stock Overview
Best Buy Co., Inc. retails technology products in the United States and Canada.
Best Buy Co., Inc. Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$78.51|
|52 Week High||US$141.97|
|52 Week Low||US$64.29|
|1 Month Change||12.30%|
|3 Month Change||-10.13%|
|1 Year Change||-33.50%|
|3 Year Change||17.23%|
|5 Year Change||29.41%|
|Change since IPO||33,816.54%|
Recent News & Updates
Is Now The Time To Look At Buying Best Buy Co., Inc. (NYSE:BBY)?
Best Buy Co., Inc. ( NYSE:BBY ) saw a decent share price growth in the teens level on the NYSE over the last few...
Best Buy: It Has Been So Bad That It's Starting To Look Good
Best Buy stock has been decimated in 2022, falling nearly 46% from its November highs. However, we believe the worst seems to be over. Analysts are still pessimistic about retailers' prospects in 2022. Companies like Best Buy with significant discretionary spending could face further headwinds. However, the market is forward-looking. If Best Buy can execute well from here, things should get easier through FY23. Our price action analysis suggests a long-term bottom could have formed two weeks ago. BBY's valuation is also reasonable after its massive collapse. Therefore, we rate BBY as a Buy. However, it's short-term overbought. So, investors can consider a retracement first before adding exposure. Thesis Leading retailer Best Buy Co., Inc. (BBY) stock has been battered since forming its highs in November 2021. The market has set up the massive de-rating in BBY, as it anticipated slowing growth in 2022. Given its significant exposure to consumer discretionary spending, we believe the de-rating is justified. The company's weak performance was palpable, as it lapped highly challenging and unsustainable comps driven by the surge in 2020-21. Moreover, the worsening macro headwinds, exacerbated by high inflation, interest rate hikes, and high energy costs, sent BBY down nearly 46% from its November 2021 highs. Notwithstanding, we believe the worst seems to be over. Our analysis suggests that Best Buy's revenue and profitability growth could recover moving forward after hitting its nadir last quarter. Our price action analysis also suggests that BBY could have staged its long-term bottom two weeks ago. Notwithstanding, it appears overbought in the short term, as it recovered markedly from its June lows. However, our valuation model indicates that BBY is still reasonably valued if it can execute its recovery cadence well. Therefore, we believe investors who have been waiting for a potential bottom to add BBY can consider adding exposure. Accordingly, we rate BBY as a Buy. Perfect Storm In Retail Decimated Best Buy Retailers have been undergoing some of the most challenging headwinds since the COVID pandemic, driven by the culmination of a series of upheavals. The geopolitical conflict, surging inflation exacerbated by high energy costs, and a hawkish Fed had all come together to create a perfect storm. Best Buy revenue by product category share % (Company filings) As a result, retailers with significant exposure to consumer discretionary spending have suffered tremendously. As seen above, consumer electronics and PC/mobile devices accounted for 72% of Best Buy's revenue in FQ1'23. It also led to a series of downgrades by the Street recently, as analysts anticipated further challenges. BofA (BAC) cautioned in a recent note (edited): We believe retail will continue to feel the impact of US consumers shifting their spending habits and budgets to prioritize non-discretionary categories (such as gas, groceries, and home & auto maintenance) over discretionary categories (such as consumer electronics and hobbies). For Best Buy, we caution that there's increasing uncertainty around 2023 earnings, and therefore its valuation looks incrementally less attractive. - Barron's In addition, Morgan Stanley (MS) also slashed its retail outlook for 2022, as it added (edited): Inflation is running well above our expectations entering the year, and it's outpacing disposable income growth. The result is a higher proportion of consumers' incomes is being spent on necessities like food (which is seeing 10%+ inflation) and rent, while dollars are being pulled away from discretionary purchasing. Therefore, the Street is getting increasingly negative on retail. Notwithstanding, we urge investors to use independent analysis and not just rely on the Street's commentary. Best Buy Should Perform Better Moving Forward Best Buy domestic comparable sales change % (Company filings) Those massive revenue gains, as seen in its comps sales growth in FY21-22, were unsustainable. Therefore, we believe the de-rating by the market is well-deserved, as investors normalize their expectations of BBY's growth cadence ahead. Best Buy revenue change % and adjusted EBIT change % consensus estimates (S&P Cap IQ)
|BBY||US Specialty Retail||US Market|
Return vs Industry: BBY matched the US Specialty Retail industry which returned -34% over the past year.
Return vs Market: BBY underperformed the US Market which returned -13.5% over the past year.
|BBY Average Weekly Movement||6.9%|
|Specialty Retail Industry Average Movement||8.9%|
|Market Average Movement||7.9%|
|10% most volatile stocks in US Market||17.0%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: BBY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: BBY's weekly volatility (7%) has been stable over the past year.
About the Company
Best Buy Co., Inc. retails technology products in the United States and Canada. The company operates in two segments, Domestic and International. Its stores provide computing products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness, home theater, portable audio comprising headphones and portable speakers, and smart home products.
Best Buy Co., Inc. Fundamentals Summary
|BBY fundamental statistics|
Is BBY overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|BBY income statement (TTM)|
|Cost of Revenue||US$39.49b|
Last Reported Earnings
Apr 30, 2022
Next Earnings Date
Aug 30, 2022
|Earnings per share (EPS)||9.77|
|Net Profit Margin||4.33%|
How did BBY perform over the long term?See historical performance and comparison