Best Buy Co (BBY)
NYSE:BBY
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Best Buy Co
(NYSE:BBY)
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Rating:58Neutral
Price Target:
$69.00
▲(4.97% Upside)
Action:ReiteratedDate:04/23/26
BBY scores as a middle-of-the-road setup primarily due to pressured financial performance (sharp TTM revenue decline, thinner profitability, and weakening cash-flow conversion) and only moderate balance-sheet flexibility. Offsetting factors include a reasonable valuation with a solid dividend and moderately positive technical momentum. Earnings-call guidance is constructive on gross profit drivers (ads/marketplace) but tempered by an investment-year margin outlook and near-term category/promotional and component-cost risks.
Positive Factors
Ads & marketplace growth
Best Buy is scaling high-margin, platform-like revenue streams (ads and third-party marketplace). These businesses diversify revenue away from cyclical product sales, can materially lift gross profit rate as they scale, and create durable operating leverage versus sole reliance on retail margins.
Negative Factors
Revenue decline & margin squeeze
A sustained ~32% TTM revenue drop and compressed operating margins materially weaken unit economics. Lower top line reduces fixed-cost absorption and hinders reinvestment capacity, making it harder to scale new initiatives and maintain FCF generation if demand weakness persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Ads & marketplace growth
Best Buy is scaling high-margin, platform-like revenue streams (ads and third-party marketplace). These businesses diversify revenue away from cyclical product sales, can materially lift gross profit rate as they scale, and create durable operating leverage versus sole reliance on retail margins.
Read all positive factors
Best Buy Co (BBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.65B
Dividend Yield5.46%
Average Volume (3M)4.16M
Price to Earnings (P/E)12.8
Beta (1Y)0.99
Revenue Growth0.39%
EPS Growth17.90%
CountryUS
Employees85,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)2.61
Shares Outstanding209,112,580
10 Day Avg. Volume3,352,986
30 Day Avg. Volume4,159,000
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 Cap1.16
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit1.57
Enterprise Value/Ebitda7.05
Forecast
1Y Price Target
$72.00Price Target Upside9.54% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)6.49
Revenue Forecast (FY)$41.75B
Best Buy Co Business Overview & Revenue Model
Company Description
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 co...
How the Company Makes Money
Best Buy makes money primarily by selling consumer technology products through its retail stores and e-commerce platforms. A significant portion of revenue comes from product sales across major categories such as computing and mobile phones, TVs/h...
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 Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: management highlighted resilient profitability, improved customer experience metrics, momentum in computing, mobile and emerging categories, and clear progress scaling marketplace and ads (which are beginning to contribute to gross profit). At the same time, near-term top-line softness (Q4 comps down 0.8% and revenue down 1%), category pressures (home theater and appliances), international margin weakness, and material near-term uncertainty from memory-component cost inflation and a promotional industry environment temper the outlook. Fiscal 2027 is framed as an investment year where ads and marketplace growth should support gross profit expansion, but operating margin is guided lower versus the Q4 run-rate while investments scale.Positive Updates
Q4 Profitability Beat
Reported Q4 revenue of $13,800,000,000 with an adjusted operating income rate of 5% (up 10 basis points year-over-year) and adjusted EPS of $2.61 (up 1% YoY), described as better-than-expected profitability for the quarter.
Negative Updates
Comparable Sales and Revenue Softness
Q4 enterprise comparable sales declined 0.8% year-over-year (within guidance) and enterprise revenue decreased 1% versus prior year; domestic revenue decreased 1.1% to $12,600,000,000.
Read all updates
Q4-2026 Updates
Positive
Negative
Q4 Profitability Beat
Reported Q4 revenue of $13,800,000,000 with an adjusted operating income rate of 5% (up 10 basis points year-over-year) and adjusted EPS of $2.61 (up 1% YoY), described as better-than-expected profitability for the quarter.
Read all positive updates
Company Guidance
Best Buy guided fiscal 2027 to revenue of $41.2–$42.1 billion, comparable sales of down 1% to up 1%, an adjusted operating income rate of ~4.3%–4.4%, an adjusted effective tax rate of ~25.5%, and adjusted diluted EPS of $6.30–$6.60; planned capital expenditures are ≈$750 million and share repurchases ≈$300 million (primarily in Q4). Management expects gross profit rate to improve ~30 basis points YoY driven by ads and marketplace (FY26 ad collections were just over $900 million and ads are expected to grow ~10% in FY27; marketplace Q4 GMV ≈$300 million), with FY27 the last major investment year before larger operating income contributions in FY28–29. For Q1 they expect comparable sales ≈+1% (February ≈‑1% with March/April stronger) and an adjusted operating income rate of ≈3.9% (≈10 bps YoY improvement driven by gross margin expansion); SG&A assumes incremental investments for ads/marketplace with the high end including ~$30 million more incentive compensation while the low end could entail further variable expense reductions (including roughly $100 million of incentive compensation at a ‑1% sales outcome). They also plan six new domestic stores (net of two closures), capex of ≈$750M, and expect vendor‑provided labor to grow after a ~20% increase in 2H FY26.Best Buy Co Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
55
Neutral
Cash Flow
52
Neutral
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 41.69B | 41.53B | 43.45B | 46.30B | 51.76B |
| Gross Profit | 9.37B | 9.38B | 9.60B | 9.91B | 11.64B |
| EBITDA | 2.28B | 2.21B | 2.60B | 2.74B | 3.92B |
| Net Income | 1.07B | 927.00M | 1.24B | 1.42B | 2.45B |
Balance Sheet | |||||
| Total Assets | 14.67B | 14.78B | 14.97B | 15.80B | 17.50B |
| Cash, Cash Equivalents and Short-Term Investments | 1.74B | 1.58B | 1.45B | 1.87B | 2.94B |
| Total Debt | 4.13B | 4.05B | 3.98B | 3.98B | 3.94B |
| Total Liabilities | 11.71B | 11.97B | 11.91B | 13.01B | 14.48B |
| Stockholders Equity | 2.96B | 2.81B | 3.05B | 2.79B | 3.02B |
Cash Flow | |||||
| Free Cash Flow | 1.26B | 1.39B | 675.00M | 894.00M | 2.52B |
| Operating Cash Flow | 1.96B | 2.10B | 1.47B | 1.82B | 3.25B |
| Investing Cash Flow | -730.00M | -704.00M | -781.00M | -962.00M | -1.37B |
| Financing Cash Flow | -1.08B | -1.31B | -1.14B | -1.81B | -4.30B |
Best Buy Co Technical Analysis
Positive
65.73
Price Trends
63.68
Positive
66.48
Negative
69.09
Negative
Market Momentum
0.15
Negative
58.65
Neutral
74.37
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 above the 20-day moving average (MA) of 63.32, above the 50-day MA of 63.68, and below the 200-day MA of 69.09, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 58.65 is Neutral, neither overbought nor oversold. The STOCH value of 74.37 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 25 risk factors in its most recent earnings report. Best Buy Co reported the most risks in the "Production" 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 | $45.95B | 19.91 | 44.12% | 1.38% | 13.15% | 5.89% | |
67 Neutral | $21.57B | 23.88 | 51.45% | 1.37% | 1.24% | -1.80% | |
66 Neutral | $6.11B | 7.82 | -33.00% | ― | 1.78% | 75.71% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $12.65B | 12.85 | 38.54% | 5.46% | 0.39% | 17.90% | |
54 Neutral | $11.19B | 25.55 | 8.00% | ― | -5.05% | 251.00% | |
52 Neutral | $10.59B | 52.77 | 51.43% | ― | 6.24% | -41.25% |
* Consumer Cyclical Sector Average
BBY
Best Buy Co
60.05
-4.39
-6.81%
EBAY
eBay
104.07
36.42
53.84%
GME
GameStop
26.53
-0.95
-3.46%
WSM
Williams-Sonoma
179.99
21.75
13.74%
ETSY
Etsy
63.17
18.87
42.60%
CHWY
Chewy
25.54
-11.12
-30.33%
Best Buy Co Corporate Events
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.