Latest news with #BBY
Miami Herald
14-07-2025
- Business
- Miami Herald
Best Buy analyst, focused on earnings growth, reworks stock price target
You could say that again. In April Best Buy (BBY) CEO Corie Barry displayed a remarkable gift for understatement during the electronics retailer's first-quarter-earnings call. Don't miss the move: Subscribe to TheStreet's free daily newsletter ""It has certainly been an eventful start to the year," she told analysts. For those of you who don't recall, let's hop into the Wayback machine and set a course for just a few months when President Donald Trump announced a sweeping set of tariffs during what he called his April 2 Liberation Day extravaganza. Trump claimed the levies tariffs would cause factories to move production back to the U.S., although the proposals rocked the stock market something brutal when they were first announced and they're still having an impact in light of renewed trade tensions. Best Buy posted better-than-expected first-quarter earnings but cut its outlook as Trump's tariffs raised the cost of imported electronics. Other companies, such as retailers Abercrombie & Fitch (ANF) and Macy's (M) , also cut their profit outlooks at the time. Bloomberg/Getty Images "I'm proud of how our teams have been navigating the environment and planning our business against the backdrop of dynamic macroeconomic factors," Barry said. Comparable sales slipped 0.7% as growth in computing, mobile phones and tablets was offset declines in home theater, appliances and drones. More Retail Stocks: Beloved American toy company sends harsh message to workersLululemon's new line faces heat over 'misleading' labelAnalysts reboot Nike stock price targets ahead of earnings "International trade is critically important for our business and industry," Barry said. "The consumer electronics supply chain is highly global, technical and complex." China continues to be a major source of merchandise, but the country at that point accounted for 30% to 35% of its offerings, compared with the 55% that it discussed in March. "There isn't a great single source for everything we sell, especially in consumer electronics," Barry said. "And, obviously, quarter to quarter within categories, you're going to see fluctuations, depending on competitive actions and tradeoff decisions." "I think it's fair to say that we are going to make strategic pricing and promotional decisions depending on the environment," she said. After the Q1 results DA Davidson pared its price target on Best Buy to $90 from $95 and affirmed a buy rating on the shares. Davidson said that the company's tariff situation had greatly improved versus the concerns that hurt the stock in March and that it was likely to continue to improve with potential policy changes. However, the firm said this was being offset by weaker comparable sales, which are heightening market-share concern as other channels seem to be showing better consumer electronics trends, according to The Fly. Best Buy wrapped up its Black Friday event in July. Along with Target (TGT) , the company is credited with being among the first retailers to use the phrase "Black Friday in July," as early as 2012, to promote summer sales. The idea picked up steam with in 2015 with Amazon's launch of Prime Day. Related: Best Buy using AI to improve online shopping experience Piper Sandler analyst Peter Keith recently downgraded Best Buy to neutral from overweight with a price target of $75, down from $82. While the shares have underperformed year-to-date and expectations are low, Best Buy lacks meaningful catalysts in coming quarters to meaningfully speed up comparable sales and earnings growth, Keith said. Shares of the Richfield, Minn., retailer are down roughly 19% this year and about the same from this time in 2024. The analyst said that he also had longer-term competitor concerns around the company's appliance and TV categories. Best Buy is facing competition from major players like Amazon (AMZN) and Walmart (WMT) , along with other online and brick-and-mortar retailers. Last month, Best Buy said that Brian Tilzer, chief digital, analytics and technology officer, would be leaving the company. He'd joined in 2018. He previously served as chief digital officer at CVS Health. Tilzer helped oversee Best Buy's development of apps and the adoption of generative-AI integration. He said in a LinkedIn post that "we now incorporate data, AI, and other technology into the business at levels of scale, sophistication, and impact that was unimaginable back when I joined the company in 2018." Best Buy recruited Walgreens (WBA) Executive Vice President and Chief Information Officer Neal Sample to succeed Tilzer. Related: Fund-management veteran skips emotion in investment strategy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business Insider
03-07-2025
- Business
- Business Insider
'Black Friday-Like Sales': Best Buy Stock (NYSE:BBY) Gains On New Sales
We know that the retail market is not doing that great these days, especially the e-commerce side of things. But brick-and-mortar retail operations like Best Buy (BBY) have been living with adverse conditions for years now, and continue to endure. In fact, Best Buy has some big sales planned for Fourth of July weekend, which some are even comparing to Black Friday sales in the middle of summer. This was good enough for investors, who sent shares up fractionally in Thursday afternoon's trading. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Reports noted that Best Buy planned a week-long sales event, which was referred to as 'Black Friday in July.' The event is, not surprisingly, timed to coincide roughly with Amazon's (AMZN) eponymous Amazon Prime Days, and hopefully, steal some of that thunder for themselves. Best Buy's senior vice president of customer offerings and fulfillment, Jason Bonfig, explained, 'We try to do everything that is the best of who Best Buy is, so it's the mixture of every category, its the mixture of the Doorbusters, the 'Deal of the Day' and then obviously bringing additional value on top of that to our members.' With a recent PwC survey revealing that 37% of shoppers were planning to pare back back-to-school spending, and 44% planning to cut technology purchases, there is a clear demand for Best Buy to improve value to get what it can get. Dropping Healthcare It might surprise you to know that Best Buy actually had kind of a healthcare arm in its ownership of Current Health. It might surprise you even more to know that 'had' in that previous sentence was quite correct, as Best Buy has it no longer. Its former co-founder, Christopher McGhee, reacquired the firm from Best Buy just recently. Best Buy bought Current Health back in 2021. Given that this was during the pandemic, an investment in home healthcare made for a good idea. But Best Buy found it a tough needle to thread, as it restructured the health business and took a '…non-cash goodwill impairment charge of $475 million.' McGhee noted that the health sector in general is in 'early innings' of a shift from hospital to home-based operations, so, getting Current Health back from Best Buy made a certain sense. Is Best Buy a Good Stock to Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on BBY stock based on nine Buys, nine Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 13.17% loss in its share price over the past year, the average BBY price target of $80.53 per share implies 11.79% upside potential.
Yahoo
29-06-2025
- Business
- Yahoo
Best Buy Co., Inc. (BBY): Jim Cramer Shares Major Catalyst
Best Buy Co., Inc. (NYSE:BBY) is one of the . Best Buy Co., Inc. (NYSE:BBY) is an American technology products retailer. The firm's shares have lost 20.8% year-to-date as the firm has struggled from weak earnings performance and tariffs. Best Buy Co., Inc. (NYSE:BBY) cut its 2026 earnings guidance to a midpoint of $41.5 billion from an earlier $41.8 billion based on the assumption that tariffs will stay consistent until the end of this year. Best Buy Co., Inc. (NYSE:BBY)'s stock also struggled in 2024 as the firm bet heavily on AI PCs only to be left with excess inventory as demand failed to materialize. Cramer commented on this particular aspect: 'It's moving because this Morgan Stanley piece revisiting Microsoft plus OpenAI. . . .Azure AI revenue, very strong. In keeping with what you [David] said, when you asked Sanjay Mehrotra the CEO [of Micro] [why the AI-enabled PC hasn't taken off]. . his response was, just you wait. . .People don't realize Sanjay, I know that Sanjay was a bit verbose, in his answers. . .look I've known Sanjay for years, you can tell him after this, but I think what you have is, you have a PC market that could be exploding. And I didn't think that. That's BestBuy situation, but it also makes sense with AMD going up every single day. Because that could be PC.' A busy retail store showcasing a wide range of consumer electronics. In his earlier remarks about Best Buy Co., Inc. (NYSE:BBY), Cramer discussed the firm's earnings: 'The numbers out today were much better than expected—not better than expected, not better than feared, much better than expected. There was without a doubt a shock when you saw how good these were, because what it said is that Corie Barry and raised the div to, in this environment, is just doing incredibly well. And then there was this paragraph at the end of her talk where she said, of course, tariffs are coming, get a lot of stuff from China and Mexico, and we're going to have to raise prices. We're not sure how much we're going to have to raise prices.' While we acknowledge the potential of BBY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
19-06-2025
- Business
- Yahoo
Is Best Buy Stock Underperforming the Dow?
With a market cap of $14.3 billion, Best Buy Co., Inc. (BBY) is a leading multinational specialty retailer of consumer electronics, appliances, and related services. Operating in the United States and Canada, the company serves customers through various brands such as Best Buy, Geek Squad, Lively, and Pacific Kitchen and Home. Companies valued at more than $10 billion are generally considered 'large-cap' stocks, and Best Buy fits this criterion perfectly. Best Buy offers a wide range of products and services through its physical stores and online platforms, including technology solutions, home essentials, and health-focused offerings. 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer OpenAI CEO Sam Altman Says 'We Are Heading Towards a World Where AI Will Just Have Unbelievable Context on Your Life' Archer Aviation Is Betting Big on Its Fledgling Defense Business. Does That Make ACHR Stock a Buy Here? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Shares of the Richfield, Minnesota-based company have declined 34.7% from its 52-week high of $103.71. Over the past three months, its shares have decreased 7.3%, underperforming the broader Dow Jones Industrials Average's ($DOWI) 1.4% rise during the same period. Longer term, BBY stock is down over 21% on a YTD basis, a steeper drop than DOWI's marginal decline. Moreover, shares of the consumer electronics retailer have dipped 27.6% over the past 52 weeks, compared to DOWI's 8.6% increase over the same time frame. The stock has been in a bearish trend, consistently trading below its 50-day and 200-day moving averages since March. However, it has risen above its 50-day moving average since May. Despite posting a better-than-expected Q1 2026 adjusted EPS of $1.15, Best Buy shares fell 7.3% on May 29 due to a significant cut in its full-year comparable sales and adjusted EPS guidance to $6.15 - $6.30. Investor sentiment was further dampened by concerns over rising U.S. tariffs, which could increase costs on imported goods, roughly 30% - 35% of Best Buy's inventory, pressuring margins and consumer demand for high-ticket items. Additionally, BBY stock has performed weaker than its rival, Ulta Beauty, Inc. (ULTA). ULTA stock has returned 8.9% YTD and 23.8% over the past 52 weeks. Despite the stock's underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of 'Moderate Buy' from 23 analysts in coverage, and as of writing, BBY is trading below the mean price target of $79.10. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Forbes
16-06-2025
- Business
- Forbes
Will Switch 2 Sales Lift Best Buy Stock Out Of Turbulence?
Note: Best Buy's FY'25 concluded on February 1, 2025 The eagerly awaited Nintendo Switch 2 launch is creating excitement among both gamers and retailers. While Best Buy (NYSE: BBY) stands to benefit from the increased demand, even a hit product cycle may not be sufficient to counter the retailer's rising financial and macroeconomic challenges. BBY stock has already declined 13% year-to-date, lagging behind the S&P 500's stable performance. In its Q1 FY 2026 (which ended on May 3) earnings report, Best Buy reported a 2% decrease in net sales and a 5% decline in diluted EPS, impacted by dwindling demand for home theaters, appliances, and drones. While gaming categories—including mobile phones, tablets, and computers—saw some recovery, it's evident that not even the excitement around the Switch 2 can reverse broader spending exhaustion. For investors seeking growth with lower volatility, the Trefis High Quality Portfolio has surpassed the S&P 500 with 91% returns since its inception, providing a smoother experience amid market turbulence. Investors might be underestimating how severe the decline could be. Best Buy has a history of poor performance during economic downturns. During the inflation surge of 2022, BBY fell nearly 55% from peak to trough, while the S&P 500 fell 25%. In the COVID crash of 2020, the stock dropped 45%, and in the 2008 financial crisis, it plummeted 67%. In each of these instances, BBY experienced sharper declines—and often required years to bounce back. Could history repeat itself? If similar economic challenges resurface, a decrease from today's $73 to approximately $35 isn't out of the realm of possibility. Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and after the last six market crashes. Best Buy's net income for the three-month period ending May 3 fell about 18% to $202 million, or 95 cents per share, down from $246 million, or $1.13 per share, from the same quarter last year. Excluding one-time expenses, including restructuring costs for its Best Buy Health division, the company reported earnings of $1.15 per share. First-quarter revenue marginally decreased to $8.77 billion. Comparable sales decreased 0.7% year-over-year in Q1. In the United States, comparable sales also fell 0.7% year-over-year. Adding further challenges are cost pressures related to tariffs. Approximately 30–35% of Best Buy's goods come from China, facing tariffs of up to 30%, while 40% is sourced from countries like Vietnam, India, South Korea, and Taiwan, which are now subject to a 10% tariff. Best Buy has already raised certain prices as of mid-May 2025 and is urging vendors to diversify their sourcing and reduce costs. For fiscal 2026, the retailer announced its expected revenue range of $41.1 billion to $41.9 billion, down from its previous estimate of $41.4 billion to $42.2 billion. It anticipates adjusted earnings per share to be between $6.15 and $6.30, compared to earlier guidance of $6.20 to $6.60. Looking forward, Best Buy expects consumer behavior to maintain the resilience and caution seen in FY 2025, as elevated inflation continues to increase household expenditures and encourage a discerning, value-oriented approach to discretionary spending, particularly on high-ticket items. Best Buy is currently trading at 18 times trailing earnings, which seems pricey in comparison to its four-year average P/E ratio of 12 times. Nonetheless, the stock's forward P/E ratio of about 11x indicates a more moderate valuation, possibly reflecting expectations for future earnings growth. However, analysts' price targets suggest an upside of only 4% from current prices, indicating limited optimism. This caution seems justified given the company's weak fundamentals: revenue is expected to remain stagnant in FY 2026, with just a modest 2% increase anticipated in FY 2027. Concurrently, ongoing operational challenges and macroeconomic pressures continue to complicate the overall outlook. Check out our detailed analysis on Best Buy's Valuation for more insights into what is influencing our price estimate for the stock. If you own BBY shares, consider this: Would you hold or sell if the stock dropped to $40—or even $30? The company's track record during downturns and current margin pressures warrant serious consideration. While new product launches like the Nintendo Switch 2 may provide short-term boosts, they are unlikely to offset the broader factors that are negatively impacting sales and earnings. Trefis collaborates with Empirical Asset Management—a Boston area wealth management firm—whose asset allocation strategies generated positive returns during the 2008-09 period when the S&P fell by more than 40%. Empirical has integrated the Trefis HQ Portfolio into its asset allocation framework to offer clients better returns and reduced risk in comparison to the benchmark index—a less volatile experience, as illustrated in HQ Portfolio performance metrics.
