Aug. 21 at 12:46 PM
$BBY "Heads up alert! Upcoming earnings on Thursday, 8/28/2025 for
$BBY
Bearish (3.2)
---
Financial Analysis of Best Buy Co., Inc.
(NYSE: BBY)
Best Buy's current market performance presents a challenging picture, with its stock having declined by 18.6% over the past six months, starkly underperforming compared to the S&P 500's 4.7% gain.
This decline can be attributed to a combination of factors including a downgrade from Piper Sandler, which adjusted its rating to ""Neutral"" from ""Overweight"" and lowered the price target to
$75 due to weak appliance and TV sales.
Despite these challenges, Wall Street analysts maintain a moderately optimistic outlook, albeit with caution due to a lack of significant growth catalysts in the near term.
Financially, Best Buy's P/E ratio stands at approximately 11.5, which is lower than the industry average, suggesting that the stock might be undervalued.
However, the company's EPS growth is expected to experience a single-digit decline in the upcoming quarter, reflecting the ongoing pressures on sales and profitability.
Revenue forecasts remain modest, with expectations of stable but unspectacular performance, especially as the company's attempts to diversify through its digital marketplace show potential but are still in nascent stages.
When compared to industry peers like Amazon and Walmart, Best Buy struggles to match the robust growth and innovation driving those behemoths.
Earnings Report Expectations
Best Buy is anticipated to release its second-quarter earnings report in September.
Analysts predict a single-digit decline in the bottom line, underscoring the ongoing challenges within the retail electronics sector.
Historically, Best Buy's earnings have been pressured by market saturation and competitive pricing strategies.
The consensus among analysts is cautious, with expectations of stable comparable sales but no major catalysts that could significantly alter the stock's trajectory.
The focus will be on how the digital marketplace and partnerships, such as those with IKEA, might impact future earnings and help offset brick-and-mortar sales declines.
Sector Performance Overview
The broader retail sector, particularly electronics and appliance stores, is facing headwinds.
The sector is grappling with slower consumer spending, competitive pressures from e-commerce giants, and supply chain challenges.
Despite these difficulties, consumer electronics remain a vital component of retail, with potential growth driven by technological advancements and consumer demand for new gadgets.
However, Best Buy's challenges reflect a broader industry trend of consolidation and strategic realignment to capture market share in a highly competitive landscape.
The sector's overall performance remains mixed, with pockets of growth in digital and innovative retail strategies but overall cautious optimism due to economic uncertainties.
- Funds were net buyers of
$BBY during the previous reporting quarter.
- Funds with large holdings in
$BBY include:
- Canada Pension , MV:
$79MM. Fund Rank: 80%
- Adage Capital P, MV:
$18MM. Fund Rank: 89%
www.adagecapital.com
- IEQ Capital LLC, MV:
$11MM. Fund Rank: 82%
- Armistice Capital LLC, MV:
$3MM. Fund Rank: 78%
www.armisticecapital.com
- Last 10 days performance: 7%
- Last 30 days performance: 12%
- Last 90 days performance: 6%
Some of the latest news articles:
- Title: Generation Income Properties Secures Early Best Buy Lease Extension, Highlighting Tenant Commitment at an Increased Rent; Provides Update on Chicago Property Agreement
Publication Date: 8/20/2025 8:45:00 PM, Source: yahoo
URL: https://finance.yahoo.com/news/generation-income-properties-secures-early-204500106.html?.tsrc=rss
- Title: Subway hires president of North America
Publication Date: 8/20/2025 3:31:00 PM, Source: yahoo
URL: https://www.restaurantdive.com/news/subway-appoints-damien-harmon-president-north-america/758176/?.tsrc=rss
- Title: Best Buy Faces Mixed Outlook Ahead of Q2 Earnings, BofA Says
Publication Date: 8/20/2025 2:48:39 PM, Source: yahoo
URL: https://finance.yahoo.com/news/best-buy-faces-mixed-outlook-144839919.html?.tsrc=rss
- Title: Aterian Launches Multiple Products on BestBuy.com
Publication Date: 8/20/2025 12:30:00 PM, Source: yahoo
URL: https://finance.yahoo.com/news/aterian-launches-multiple-products-bestbuy-123000119.html?.tsrc=rss
Follow us on stocktwits.com for more earnings alerts. Not a financial advice. Not a trading signal."
