Is Best Buy Stock a Good Investment?
Best Buy Investment Advice | BBY |
- Examine Best Buy's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Best Buy's leadership team and their track record. Good management can help Best Buy navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Computer & Electronics Retail space and any emerging trends that could impact Best Buy's business and its evolving consumer preferences.
- Compare Best Buy's performance and market position to its competitors. Analyze how Best Buy is positioned in terms of product offerings, innovation, and market share.
- Check if Best Buy pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Best Buy's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Best Buy Co stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Best Buy Co is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Best Buy Stock
Researching Best Buy's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 87.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.43. Best Buy recorded earning per share (EPS) of 5.79. The entity last dividend was issued on the 19th of September 2024. The firm had 3:2 split on the 4th of August 2005.
To determine if Best Buy is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Best Buy's research are outlined below:
| Best Buy Co has 3.98 B in debt with debt to equity (D/E) ratio of 1.34, which is OK given its current industry classification. Best Buy has a current ratio of 0.96, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Best to invest in growth at high rates of return. | |
| Over 87.0% of Best Buy shares are held by institutions such as insurance companies | |
| On 10th of October 2024 Best Buy paid $ 0.94 per share dividend to its current shareholders | |
| Latest headline from benzinga.com: Disposition of 27109 shares by Scarlett Kathleen of Best Buy at 57.6 subject to Rule 16b-3 |
Best Buy Quarterly Liabilities And Stockholders Equity |
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Best Buy uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Best Buy Co. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Best Buy's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of March 2024 Upcoming Quarterly Report | View | |
| 23rd of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 7th of March 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Best Buy's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Best Buy's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2001-06-19 | 2001-04-30 | 0.1 | 0.12 | 0.02 | 20 | ||
2006-12-12 | 2006-10-31 | 0.35 | 0.31 | -0.04 | 11 | ||
2009-09-15 | 2009-07-31 | 0.42 | 0.37 | -0.05 | 11 | ||
2015-11-19 | 2015-10-31 | 0.35 | 0.41 | 0.06 | 17 | ||
2013-11-19 | 2013-10-31 | 0.12 | 0.18 | 0.06 | 50 | ||
2011-09-13 | 2011-07-31 | 0.53 | 0.47 | -0.06 | 11 | ||
2008-06-17 | 2008-04-30 | 0.37 | 0.43 | 0.06 | 16 | ||
2014-11-20 | 2014-10-31 | 0.25 | 0.32 | 0.07 | 28 |
Know Best Buy's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Best Buy is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Best Buy Co backward and forwards among themselves. Best Buy's institutional investor refers to the entity that pools money to purchase Best Buy's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Bank Of New York Mellon Corp | 2024-06-30 | 2.9 M | D. E. Shaw & Co Lp | 2024-06-30 | 2.8 M | Goldman Sachs Group Inc | 2024-06-30 | 2.5 M | Norges Bank | 2024-06-30 | 2.5 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 2.4 M | Northern Trust Corp | 2024-09-30 | 2.2 M | Legal & General Group Plc | 2024-06-30 | 1.9 M | Federated Hermes Inc | 2024-09-30 | 1.8 M | Raymond James Finl Svs Advisors, Inc. | 2024-09-30 | 1.7 M | Blackrock Inc | 2024-06-30 | 23.3 M | Vanguard Group Inc | 2024-09-30 | 22.8 M |
Best Buy's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 18.63 B.Market Cap |
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Best Buy's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Capital Employed | 0.22 | 0.06 |
Determining Best Buy's profitability involves analyzing its financial statements and using various financial metrics to determine if Best Buy is a good buy. For example, gross profit margin measures Best Buy's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Best Buy's profitability and make more informed investment decisions.
Best Buy's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Best Buy's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Best Buy Co. Check Best Buy's Beneish M Score to see the likelihood of Best Buy's management manipulating its earnings.
Evaluate Best Buy's management efficiency
Best Buy has Return on Asset of 0.0722 % which means that on every $100 spent on assets, it made $0.0722 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.4241 %, implying that it generated $0.4241 on every 100 dollars invested. Best Buy's management efficiency ratios could be used to measure how well Best Buy manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to 0.001 in 2024. Return On Capital Employed is likely to drop to 0.06 in 2024. At this time, Best Buy's Non Current Assets Total are fairly stable compared to the past year. Non Currrent Assets Other is likely to rise to about 702.5 M in 2024, whereas Total Assets are likely to drop slightly above 9.7 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 14.02 | 1.75 | |
| Tangible Book Value Per Share | 7.67 | 1.75 | |
| Enterprise Value Over EBITDA | 7.17 | 5.93 | |
| Price Book Value Ratio | 5.40 | 0.99 | |
| Enterprise Value Multiple | 7.17 | 5.93 | |
| Price Fair Value | 5.40 | 0.99 | |
| Enterprise Value | 640.2 M | 608.2 M |
Best Buy's management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Dividend Yield 0.0432 | Forward Dividend Yield 0.0432 | Forward Dividend Rate 3.76 | Beta 1.493 |
Basic technical analysis of Best Stock
As of the 21st of November, Best Buy shows the Downside Deviation of 1.69, risk adjusted performance of 0.0314, and Mean Deviation of 1.3. Best Buy technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Best Buy's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Best Buy insiders, such as employees or executives, is commonly permitted as long as it does not rely on Best Buy's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Best Buy insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Best Buy's Outstanding Corporate Bonds
Best Buy issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Best Buy uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Best bonds can be classified according to their maturity, which is the date when Best Buy Co has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US08652BAB53 Corp BondUS08652BAB53 | View | |
| BEST BUY INC Corp BondUS08652BAA70 | View |
Understand Best Buy's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Best Buy's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0314 | |||
| Market Risk Adjusted Performance | 0.2644 | |||
| Mean Deviation | 1.3 | |||
| Semi Deviation | 1.59 | |||
| Downside Deviation | 1.69 | |||
| Coefficient Of Variation | 3039.87 | |||
| Standard Deviation | 2.25 | |||
| Variance | 5.05 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | 0.0424 | |||
| Total Risk Alpha | (0.19) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.2544 | |||
| Maximum Drawdown | 18.06 | |||
| Value At Risk | (2.43) | |||
| Potential Upside | 2.26 | |||
| Downside Variance | 2.86 | |||
| Semi Variance | 2.52 | |||
| Expected Short fall | (1.29) | |||
| Skewness | 3.65 | |||
| Kurtosis | 23.16 |
| Risk Adjusted Performance | 0.0314 | |||
| Market Risk Adjusted Performance | 0.2644 | |||
| Mean Deviation | 1.3 | |||
| Semi Deviation | 1.59 | |||
| Downside Deviation | 1.69 | |||
| Coefficient Of Variation | 3039.87 | |||
| Standard Deviation | 2.25 | |||
| Variance | 5.05 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | 0.0424 | |||
| Total Risk Alpha | (0.19) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.2544 | |||
| Maximum Drawdown | 18.06 | |||
| Value At Risk | (2.43) | |||
| Potential Upside | 2.26 | |||
| Downside Variance | 2.86 | |||
| Semi Variance | 2.52 | |||
| Expected Short fall | (1.29) | |||
| Skewness | 3.65 | |||
| Kurtosis | 23.16 |
Consider Best Buy's intraday indicators
Best Buy intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Best Buy stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Best Buy Corporate Filings
F4 | 15th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 6th of September 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 29th of August 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 25th of June 2024 Other Reports | ViewVerify |
Best Stock media impact
Far too much social signal, news, headlines, and media speculation about Best Buy that are available to investors today. That information is available publicly through Best media outlets and privately through word of mouth or via Best internal channels. However, regardless of the origin, that massive amount of Best data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Best Buy news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Best Buy relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Best Buy's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Best Buy alpha.
Best Buy Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Best Buy can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Best Buy Historical Investor Sentiment
Investor biases related to Best Buy's public news can be used to forecast risks associated with an investment in Best. The trend in average sentiment can be used to explain how an investor holding Best can time the market purely based on public headlines and social activities around Best Buy Co. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Best Buy's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Best Buy and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Best Buy news discussions. The higher the estimate score, the more favorable the investor's outlook on Best Buy.
Best Buy Corporate Directors
| Claudia Munce | Independent Director | Profile | |
| Karen McLoughlin | Independent Director | Profile | |
| Thomas Millner | Independent Director | Profile | |
| Steven Rendle | Independent Director | Profile |
Additional Tools for Best Stock Analysis
When running Best Buy's price analysis, check to measure Best Buy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Best Buy is operating at the current time. Most of Best Buy's value examination focuses on studying past and present price action to predict the probability of Best Buy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Best Buy's price. Additionally, you may evaluate how the addition of Best Buy to your portfolios can decrease your overall portfolio volatility.