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 in downward trend: price may decline as a result of having broken its higher Bollinger Band on September 14, 2026
BBY broke above its upper Bollinger Band on September 14, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 43 similar instances where the stock broke above the upper band. In 32 of the 43 cases the stock fell afterwards. This puts the odds of success at 74%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 28, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BBY as a result. In 63 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 73%.
The Moving Average Convergence Divergence Histogram (MACD) for BBY turned negative on September 25, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 61 similar instances when the indicator turned negative. In 44 of the 61 cases the stock turned lower in the days that followed. This puts the odds of success at 72%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
BBY moved above its 50-day moving average on September 02, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.12% 3-day Advance, the price is estimated to grow further. Considering data from situations where BBY advanced for three days, in 205 of 306 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
The Aroon Indicator entered an Uptrend today. In 118 of 189 cases where BBY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 62%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 17 (best 1 - 100 worst) indicates that the company is slightly 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 (5.924) is normal, around the industry mean (1.755). P/E Ratio (14.960) is within average values for comparable stocks, (241.673). Projected Growth (PEG Ratio) (1.682) is also within normal values, averaging (1.113). Dividend Yield (0.043) settles around the average of (0.017) among similar stocks. P/S Ratio (0.464) is also within normal values, averaging (1.033).
The Tickeron SMR rating for this company is 24 (best 1 - 100 worst), indicating very 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 43 (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 PE Growth Rating for this company is 74 (best 1 - 100 worst), pointing to worse than average 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 Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (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 91, 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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