What's Happening with BBY
Electronics retailer Best Buy (BBY) is expected to report its third-quarter results before the market open November 26. Analysts expect earnings of $1.04 per share, up from $0.93 during the same period last year. The stock has appreciated 37.5% on the year.
Technical Analysis
BBY was recently trading at $72.59 down $5.94 from its 12-month high and $24.87 above its 12-month low. InvestorsObserver's Stock Score Report gives BBY a 65 long-term technical score and a 42 short-term technical score. The stock has recent support above $67.5 and recent resistance below $77.5. Of the 15 analysts who cover the stock 5 rate it Strong Buy, 0 rate it Buy, 10 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, BBY gets a score of 55 from InvestorsObserver's Stock Score Report.
Analysts' Thoughts
Best Buy has done a fantastic job in recent years of revamping its business with a focus on improving the consumer experience, boosting its online business, and combatting the impact of "showrooming" that once threatened to destroy the company. Best Buy has focused on redesigning stores and shuttering underperforming stores. Its price-matching policy with online prices has prevented consumers from shopping in its stores to gather information on products only to buy those same products online at a lower price. The initiatives have paid off, and Best Buy has enjoyed profit growth of 24% per annum over the last five years. The stock remains attractive for value investors with shares trading at just 13 times earnings, which analysts expect to rise at an annual rate of 7.1% over the next five years. The company has posted better than expected earnings each of the last six quarters and the street expects another positive earnings surprise for Q3 with a whisper number of $1.11. The big earnings beat has been priced into the stock but given the low valuation Best Buy will not have to report such a big beat for the stock to build on its recent gains. Analysts have an average price target of $76.29 on the stock.