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Best Buy Co
(NYSE:BBY)
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Rating:69Neutral
Price Target:
$94.00
▲(10.03% Upside)
Action:Reiterated
Date:08/04/26
BBY scores in the upper-middle range mainly due to improving execution and outlook (earnings call: margin expansion, Ads/Marketplace momentum, maintained guidance) and a constructive technical trend. The score is held back by only mid-tier financial quality—thin margins, multi-year revenue pressure, and elevated leverage—despite stronger recent free cash flow. Valuation and dividend yield provide additional support, while corporate events are mildly positive but not a major driver.
Positive Factors
Higher‑margin Ads & Marketplace
Best Buy is intentionally shifting mix toward higher‑margin services: targeted ad collection growth and a sizable marketplace GMV create recurring, vendor‑funded revenue that can lift gross profit rate. Over 2–6 months this reduces reliance on low‑margin hardware cycles and supports sustainable margin expansion if execution continues.
Negative Factors
Elevated Leverage
High debt relative to equity constrains financial flexibility and raises interest‑rate and cyclical risk. In a retail environment with volatile FCF and inventory swings, elevated leverage increases the chance that earnings dips force cutbacks to investment or returns, amplifying downside over a 2–6 month horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Higher‑margin Ads & Marketplace
Best Buy is intentionally shifting mix toward higher‑margin services: targeted ad collection growth and a sizable marketplace GMV create recurring, vendor‑funded revenue that can lift gross profit rate. Over 2–6 months this reduces reliance on low‑margin hardware cycles and supports sustainable margin expansion if execution continues.
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
$18.18B
Dividend Yield4.43%
Average Volume (3M)3.59M
Price to Earnings (P/E)15.9
Beta (1Y)1.10
Revenue Growth0.99%
EPS Growth31.91%
CountryUS
Employees82,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)5.41
Shares Outstanding210,767,120
10 Day Avg. Volume3,427,714
30 Day Avg. Volume3,588,434
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$79.21Price Target Upside-7.28% Downside
Rating ConsensusHold
Number of Analyst Covering18
EPS Forecast (FY)6.55
Revenue Forecast (FY)$41.97B
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:Aug 27, 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 | 9.43B | 9.37B | 9.38B | 9.60B | 9.91B | 11.64B |
| EBITDA | 2.42B | 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
85.43
Price Trends
77.90
Positive
69.25
Positive
69.33
Positive
Market Momentum
2.94
Positive
56.32
Neutral
41.85
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 85.43 is above the 20-day moving average (MA) of 84.80, above the 50-day MA of 77.90, and above the 200-day MA of 69.33, indicating a bullish trend. The MACD of 2.94 indicates Positive momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 41.85 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.92T | 21.55 | 23.34% | ― | 15.77% | 88.63% | |
71 Outperform | $50.62B | 25.34 | 44.12% | 1.10% | 13.15% | 5.89% | |
71 Outperform | $9.75B | 12.78 | 14.03% | ― | 1.61% | 260.81% | |
69 Neutral | $18.18B | 15.94 | 40.05% | 4.47% | 0.99% | 31.91% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
44 Neutral | $376.92M | -5.31 | -32.45% | ― | -14.77% | 79.60% | |
42 Neutral | $278.52M | 58.61 | 3.58% | ― | ― | ― |
* Consumer Cyclical Sector Average
BBY
Best Buy Co
85.25
22.53
35.92%
AMZN
Amazon
284.02
72.37
34.19%
NEGG
Newegg Commerce
13.51
-41.30
-75.35%
EBAY
eBay
107.13
15.45
16.85%
GME
GameStop
19.06
-3.57
-15.78%
BBBY
Bed Bath & Beyond
5.32
-2.65
-33.25%
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...
Business Operations and StrategyExecutive/Board Changes
Best Buy Announces CFO Transition Amid Leadership Changes
Neutral
Jun 22, 2026
Best Buy Co., Inc., the world’s largest specialty consumer electronics retailer, combines a curated assortment of branded technology products with in-store, online and in-home services such as design, delivery, installation, tech support and...
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...
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.