Best Buy (BBY, $54.13) Slumps After Bank of America (BAC, $25.17) Downgrades Ratings
Shares of the American multinational consumer electronics retailer, Best Buy, dropped more than 5% on Monday after Bank of America Merrill Lynch downgraded the stock’s rating to underperform (equivalent of a sell rating) from neutral – citing slowing industry growth trends and declining sales on key product categories such as TVs, Apple products and gaming.
Further, analysts at Bank of American Merrill Lynch slashed their price target by nearly 30% from $70 to $50 a share, after its gloomy December quarterly outlook missed street estimates.
Best Buy reported better-than-expected third quarter earnings by reporting an EPS of 9 cents and sales of $9.59 billion. But shares fell by 5.8% to $52.16 on Monday, thereby taking its losses for the quarter to more than 33% amid the key holiday shopping season.
Consumer electronics, including iPhones and computers, accounts for more than 50% of Best Buy's US revenues. But headwinds pertaining to iPhone sales and a new Apple and Amazon partnership ahead of the holiday shopping season, according to the Bank of America analysts, could further dent the sales figure of the company for the December quarter.
BBY's Stochastic Oscillator remains in overbought zone for 1 day
Expect a price pull-back in the near future.
Technical Analysis (Indicators)
Bearish Trend Analysis
BBY moved below its 50-day moving average on March 05, 2026 date and that indicates a change from an upward trend to a downward trend.
The 50-day moving average for BBY moved below the 200-day moving average on February 03, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BBY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for BBY entered a downward trend on February 11, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on March 06, 2026. You may want to consider a long position or call options on BBY as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BBY just turned positive on March 04, 2026. Looking at past instances where BBY's MACD turned positive, the stock continued to rise in of 59 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BBY advanced for three days, in of 301 cases, the price rose further within the following month. The odds of a continued upward trend are .
BBY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.266) is normal, around the industry mean (14.402). P/E Ratio (22.007) is within average values for comparable stocks, (43.577). Projected Growth (PEG Ratio) (1.248) is also within normal values, averaging (3.195). Dividend Yield (0.057) settles around the average of (0.039) among similar stocks. P/S Ratio (0.340) is also within normal values, averaging (4.897).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BBY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BBY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock worse than average.
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General Information
a retailer of consumer electronics, entertainment software and appliances
Industry SpecialtyStores
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