BBY

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Best Buy stock has delivered a 15.0% return over the past year, yet its valuation checks still suggest the shares lean cheap rather than fully priced in. With the stock recently closing at US$78.72, investors are weighing how much of that performance is already reflected in the current multiples. Over the last 1 year, Best Buy has returned 15.0%, which puts a spotlight on whether the recent gain is supported by fundamentals. For Best Buy, expectations around how reliably it can convert sales into cash flow may support the current share price, while any pressure on consumer electronics demand remains a key risk to those assumptions. Best Buy scores highly on Simply Wall St's valuation checks, with 5 out of 6 suggesting the broader picture still leans toward the stock being undervalued. The issue now is whether Best Buy's recent share price strength has already captured the value indicated by those checks, or if there is still room for upside before the stock looks fully valued. Best Buy delivered 15.0% returns over the last year. See how this stacks up to the rest of the Specialty Retail industry. The P/E ratio is a useful way to look at Best Buy because earnings remain a central yardstick for how the market prices mature retailers. Best Buy trades on a P/E of about 14.5x, which sits below both the Specialty Retail industry average of roughly 19.6x and the broader peer group average of about 24.9x. On Simply Wall St's model, a more tailored fair P/E for Best Buy, based on its mix of growth expectations, profitability and risk, is around 16.7x. That is modestly above the current 14.5x level, and this suggests the market is valuing Best Buy at a discount to what this framework indicates could be appropriate for its earnings profile. On this P/E yardstick, Best Buy stock appears undervalued relative to both its own fair multiple and the average levels seen across its peers. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives take the valuation puzzle around Best Buy and spell out which assumptions on growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price, using the Community page as the hub. Each narrative presents Best Buy's fair val...

Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Best Buy (NYSE:BBY) and its peers. Some retailers try to sell everything under the sun, while others—appropriately called Specialty Retailers—focus on selling a narrow category and aiming to be exceptional at it. Whether it’s eyeglasses, sporting goods, or beauty and cosmetics, these stores win with depth of product in their category as well as in-store expertise and guidance for shoppers who need it. E-commerce competition exists and waning retail foot traffic impacts these retailers, but the magnitude of the headwinds depends on what they sell and what extra value they provide in their stores. The 7 specialty retail stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 0.6% below. Thankfully, share prices of the companies have been resilient as they are up 9.3% on average since the latest earnings results. With humble beginnings as a stereo equipment seller, Best Buy (NYSE:BBY) now sells a broad selection of consumer electronics, appliances, and home office products. Best Buy reported revenues of $8.94 billion, up 1.9% year on year. This print exceeded analysts’ expectations by 1.3%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but full-year EPS guidance slightly missing analysts’ expectations. “Today we are pleased to report better-than-expected results for the first quarter,” said Corie Barry, Best Buy CEO. Interestingly, the stock is up 20.9% since reporting and currently trades at $78.00. Is now the time to buy Best Buy? Access our full analysis of the earnings results here, it’s free. Spun off from L Brands in 2020, Bath & Body Works (NYSE:BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions. Bath and Body Works reported revenues of $1.38 billion, down 3.2% year on year, outperforming analysts’ expectations by 1.2%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Bath and Body Works delivered the highest guidance raise among its peers. The market seems happy with the results as the stock...

Best Buy Co., Inc. (NYSE:BBY) recently posted some strong earnings, and the market responded positively. We have done some analysis, and we found several positive factors beyond the profit numbers. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Over the twelve months to May 2026, Best Buy recorded an accrual ratio of -0.19. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. Indeed, in the last twelve months it reported free cash flow of US$1.6b, well over the US$1.14b it reported in profit. Best Buy shareholders are no doubt pleased that free cash flow improved over the last twelve months. However, that's not all there is to consider. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. View our latest analysis for Best Buy That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Best Buy's profit was reduced by unusual items worth US$270m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. This is what you'd expect to see where a company has a non-cash charge reducing paper profits. It's never great to see unusual it...

Retail sector CEOs have historically cited all kinds of factors in explaining operating underperformance, but their tentative tone on the Q1 earnings calls was largely justified given the uncertain macro backdrop, particularly the impact of high fuel prices on household buying power. While the headwinds have been well known, overall consumer spending trends have been stable, helping most retail companies to come out with good enough quarterly results. Market participants were particularly enthusiastic about results from the likes of Dollar Tree DLTR and Best Buy BBY. But a big contributing factor to the market’s favorable reaction to the Dollar Tree and Best Buy results was low expectations. While taking nothing away from excellent execution by the management teams at Dollar Tree, Best Buy and others in an otherwise difficult operating environment, the positive stock market follow through to the results speaks more to how beaten down expectations had become than a fundamental shift in business outlook. We had the opposite situation with Walmart WMT whose results were consistent with what we have become used to seeing from the company over the last few years, but the stock’s outperformance had likely left it priced for perfection. For more details about the overall earnings picture and evolving expectations for 2026 Q2, please check out our weekly Earnings Trends report here >>>>Looking Ahead to the 2026 Q2 Earnings Season Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Best Buy’s first quarter results were well received by the market, following a combination of outperformance in emerging product categories and operational improvements. Management pointed to strong demand for gaming, mobile phones, and new technology categories such as AI glasses and 3D printers as contributors to comparable sales growth. CEO Corie Barry emphasized the company’s ability to meet customers’ evolving needs, particularly through an expanded assortment and enhanced omnichannel experiences. The launch of marketplace initiatives and a focus on value-driven promotions were also cited as key factors supporting the quarter’s results. Is now the time to buy BBY? Find out in our full research report (it’s free). Revenue: $8.94 billion vs analyst estimates of $8.82 billion (1.9% year-on-year growth, 1.3% beat) Adjusted EPS: $1.28 vs analyst estimates of $1.23 (4.3% beat) The company reconfirmed its revenue guidance for the full year of $41.65 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $6.45 at the midpoint Operating Margin: 4.1%, up from 2.5% in the same quarter last year Locations: 1,065 at quarter end, down from 1,108 in the same quarter last year Same-Store Sales rose 2% year on year (-0.7% in the same quarter last year) Market Capitalization: $15.11 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Peter Keith (Piper Sandler) asked about the drivers behind improved home theater trends and clarified the extent of Best Buy’s exclusive rights to the new RGB TV technology. CEO-elect Jason Bonfig confirmed a one-year exclusivity window and described plans for ongoing marketing and in-store support. Christopher Horvers (JPMorgan) questioned the sustainability of May’s sales strength, including the impact of tax refunds and the upcoming Switch 2 gaming launch anniversary. CFO Matt Bilunas noted broad-based category growth in May and detailed the expected impact of product launch anniversaries on comps. Joseph Feldman (Telsey Advisory Group) inquired about the strategy for new store formats versus closures or relocations. Bonfig explained that small and medium formats...

Best Buy Co., Inc. BBY used its first-quarter fiscal 2027 earnings call to emphasize momentum in its retail transformation, expanding profit streams and an upcoming leadership transition. While the company posted results above expectations, management focused less on the quarter itself and more on growth initiatives, new technology launches and the strategic priorities that incoming CEO Jason Bonfig will pursue later this year. Best Buy reported adjusted earnings of $1.28 per share on revenues of $8.94 billion, exceeding the Zacks Consensus Estimate of $1.22 and $8.81 billion, respectively. Earnings delivered a 4.92% surprise, while revenues topped expectations by 1.44%. Comparable sales increased 2.0%, ahead of management’s outlook and marking an improvement from the prior-year decline. Adjusted operating income rate reached 4.1%, while adjusted EPS increased 11% year over year. Revenues rose 1.9% from the prior-year period. Chief executive officer Corie Barry said the company benefited from broad-based category strength and continued progress in scaling higher-margin initiatives such as Best Buy Ads and Marketplace. Barry highlighted Marketplace and Best Buy Ads as key contributors to profitability and long-term growth. Domestic Marketplace gross merchandise volume reached roughly $250 million during the quarter. Including Marketplace volume, domestic sales growth exceeded 4%, illustrating the increasing role of third-party commerce within the business. Management also reiterated expectations for Best Buy Ads to remain an important profit driver. CFO Matt Bilunas said advertising collections are projected to grow about 10% this fiscal year and approach $1 billion, while U.S. Marketplace GMV is expected to reach at least $1.2 billion. A major theme of the call was the planned CEO transition. Barry will step down later this year, with Jason Bonfig assuming the CEO role on Nov. 1. Barry described the succession process as extensive and positioned Bonfig as the executive best suited to accelerate the company’s next phase of growth. Bonfig outlined four priorities: advancing Best Buy as a retail, media, advertising and technology company; expanding customer reach; elevating the customer experience; and maintaining a human-powered, customer-focused culture. Management expressed optimism about several product categories supported by innovation. Gaming, computing...

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 2% comparable sales growth, exceeding expectations through positive performance across most major categories, including computing, mobile, and gaming. Computing delivered its ninth consecutive quarter of growth, sustained by a combination of essential replacement cycles and new product innovation. Mobile phone growth was driven by expanded carrier partnerships and improved in-store operating models that enhanced customer engagement. Home theater trends improved materially as the company gained market share ahead of a major industry-wide display technology launch. Strategic expansion of high-margin profit streams, specifically Best Buy Ads and Marketplace, contributed positively to the gross profit rate. Management observed a value-focused consumer who remains resilient and willing to spend on high-price innovation despite broader macro pressures. Domestic marketplace GMV reached approximately $250 million, representing a significant scaling of the company's third-party platform. Maintained full-year guidance, assuming continued growth in computing and mobile while expecting gross profit expansion from Ads and Marketplace. Anticipates a blended ASP increase in computing due to rising memory costs, though management expects to mitigate unit elasticity through a broad assortment strategy. Q2 comparable sales are projected at approximately 1% growth, accounting for the difficult lap of a major gaming console launch in the prior year. Plans to evolve the store footprint through new medium and small-format locations designed to increase customer proximity and fulfillment speed. The upcoming launch of RGB TV technology is expected to drive an upgrade cycle, with Best Buy holding national retail exclusivity for one year. Inventory levels increased nearly 8% due to a strategic pull-forward of computing products to lock in lower costs ahead of anticipated memory price hikes. Revenue categories were reclassified to move credit card and digital content revenue into the services category for better reporting alignment. Announced a CEO succession plan with Jason Bonfig set to assume the role on November 1, following Corie Barry's decision to step down. Identified ongoing efficiency opportunities in supply chain a...

MINNEAPOLIS, May 29, 2026--(BUSINESS WIRE)--The Board of Directors of Best Buy Co., Inc. (NYSE:BBY) has authorized the payment of a regular quarterly cash dividend of $0.96 per common share. The quarterly dividend is payable on July 9, 2026, to shareholders of record as of the close of business on June 18, 2026. The company had 210,718,220 shares of common stock issued and outstanding as of May 2, 2026. View source version on businesswire.com: https://www.businesswire.com/news/home/20260528807140/en/ Contacts Investor Contact: Mollie O’[email protected] Media Contact: Carly [email protected]

Image source: The Motley Fool. Thursday, May 28, 2026 at 8 a.m. ET Chief Executive Officer — Corie Barry Chief Financial and Strategy Officer — Matthew Bilunas Chief Customer, Product and Fulfillment Officer — Jason Bonfig Vice President, Investor Relations — Mollie O'Brien Need a quote from a Motley Fool analyst? Email [email protected] Mollie O'Brien: Thank you, and good morning, everyone. Joining me on the call today are Corie Barry, our CEO; Matt Bilunas, our Chief Financial and Strategy Officer; and Jason Bonfig, our Chief Customer, Product and Fulfillment Officer. During the call today, we will be discussing both GAAP and non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures and an explanation of why these non-GAAP financial measures are useful can be found in this morning's earnings release, which is available on our website, investors.bestbuy.com. Some of the statements we will make today are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may address the financial condition, business initiatives, growth plans, investments and expected performance of the company and are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the company's current earnings release and our most recent Form 10-K and subsequent Form 10-Qs for more information on these risks and uncertainties. The company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call. Before turning the call over to Corie, I want to note the revenue reclassification referenced within this morning's release. Starting this quarter, we have reclassified certain revenue among our categories. The most notable changes were credit card revenue and digital content, which includes digital gaming, software and subscription. Previously, these items were included within our various product revenue categories, and now they are fully included within the services category. The reclassification only impacts the presentation of revenue by category and does not affect total revenue or total comparable sales as previously reported, nor does it affect our previously reported earnings or...

US-based electronics retailer Best Buy has reaffirmed its full-year fiscal 2027 (FY27) guidance after reporting higher revenue and earnings in the first quarter (Q1). The company said it still expects FY27 revenue of $41.2bn to $42.1bn. It also maintained its forecast for comparable sales, which is expected to range between a 1% decline and a 1% growth. Best Buy left unchanged its outlook for an adjusted operating income rate of 4.3% to 4.4%. Adjusted diluted earnings per share are still projected at $6.30 to $6.60 while capital expenditure is expected to be about $750m. In Q1 FY27, Best Buy posted enterprise revenue of $8.94bn compared to $8.76bn a year earlier. Best Buy CFO Matt Bilunas said: “We are pleased with our first quarter results and are maintaining our guidance for the year. Comparable sales have started strong in May, with month-to-date growth up high single digits. "Our comparable sales outlook for the full quarter is approximately 1% growth as we start to lap last year’s very successful gaming launch in June. We expect our Q2 adjusted operating income rate to be approximately 3.9%, which is flat to last year.” For the quarter ended 2 May 2026, gross profit rose to $2.1bn from $2.05bn in the same period last year. Operating income increased to $370m from $219m a year earlier. Net earnings climbed to $276m from $202m while diluted earnings per share improved to $1.31 from $0.95. Domestic revenue totalled $8.25bn, up 1.5% from last year, mainly driven by comparable sales growth of 1.8%. On a weighted basis, gaming, computing, mobile phones and services made the largest contribution to comparable sales growth. This was partly offset by a decline in appliances. Domestic online revenue was $2.62bn, increasing 1.4% on a comparable basis. Online sales represented 31.7% of total domestic revenue, unchanged from a year earlier. International revenue rose 7.3% to $687m, supported by comparable sales growth of 4.7% and a favourable foreign exchange impact. During Q1, the company returned $202m to shareholders through dividends. It said it continues to expect to spend $300m on share repurchases during FY27. Best Buy also announced a quarterly cash dividend of $0.96 per common share. "Best Buy reiterates FY27 guidance after Q1 revenue and earnings rise" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information...

Best Buy's (BBY) sharp rally following stronger-than-expected fiscal first-quarter results leaves th

This article first appeared on GuruFocus. Revenue: $8.9 billion, a 1.9% increase versus last year. Comparable Sales Growth: 2% increase, exceeding the guidance of approximately 1%. Adjusted Operating Income Rate: 4.1%, a 30 basis point increase compared to last year. Adjusted Diluted Earnings Per Share: $1.28, up 11% versus last year. Domestic Segment Revenue: $8.2 billion, a 1.5% increase driven by 1.8% comparable sales growth. International Revenue: $687 million, a 7% increase versus last year. Online Revenue: $2.6 billion, representing 32% of domestic revenue, a 1.4% increase on a comparable basis. Domestic Gross Profit Rate: 23.7%, a 20 basis point increase. International Gross Profit Rate: 21.5%, a 50 basis point decrease. Dividends Returned to Shareholders: $202 million. Inventory Balance: Up almost 8% versus last year. Accounts Payable: Up almost 10% versus last year. Full Year Revenue Guidance: $41.2 billion to $42.1 billion. Full Year Adjusted Diluted EPS Guidance: $6.30 to $6.60. Capital Expenditures Guidance: Approximately $750 million. Share Repurchases Guidance: Approximately $300 million. Warning! GuruFocus has detected 3 Warning Signs with BBY. Is BBY fairly valued? Test your thesis with our free DCF calculator. Release Date: May 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Best Buy Co Inc (NYSE:BBY) reported better-than-expected results for the first quarter with a 2% increase in comparable sales, surpassing their outlook. The company achieved an adjusted operating income rate of 4.1% and an 11% increase in adjusted diluted earnings per share to $1.28. Best Buy Co Inc (NYSE:BBY)'s domestic marketplace GMV reached approximately $250 million, contributing to a more than 4% domestic sales growth when included. The company saw strong growth in emerging categories such as AI glasses, 3D printers, and collectibles, with sales doubling compared to last year. Best Buy Co Inc (NYSE:BBY) maintained a steady online sales mix at 32%, with 65% of online purchases delivered or available for pickup within one day, up from 60% last year. The appliances category continued to face pressure with sales declining compared to last year due to a stagnant housing market and competitive retail environment. Despite improvements, the home theater category still experienced a slight decline in sales versus...