Best Buy (BBY, $73.69) Q2 earnings tops expectations
Best Buy posted its second quarter earnings that exceeded analysts’ expectations, while reiterating its full-year guidance.
Best Buy had cut the sales and profit forecast in late July, saying it expects weaker demand for consumer electronics as people pay more for groceries and gas. The retailer projects same-store sales to drop by about 11% for the 12-month period ending in January.
The retail company’s adjusted earnings for the three months ending June came in at $1.54 per share, well above the $1.27 expected by analysts poled by Refinitiv.
Revenue of $10.33 billion also topped expectations of $10.24 billion.
Sales online and same-store sales fell by 12.1% compared to the year-ago period, vs. Best Buy's guidance of approximately 13% decrease. Chief Financial Officer Matt Bilunas said in a press release that Best Buy is anticipating a sharper plunge in third quarter same-store sales (without providing a specific guidance).
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BBY's Stochastic Oscillator sits in oversold zone for 6 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 uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
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 116 of 187 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%.
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 57 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 66%.
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 50 of the 61 cases the stock turned lower in the days that followed. This puts the odds of success at 82%.
BBY moved below its 50-day moving average on October 06, 2026 date and that indicates a change from an upward trend to a 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 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
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.
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 (2.222). P/E Ratio (14.960) is within average values for comparable stocks, (243.370). Projected Growth (PEG Ratio) (1.682) is also within normal values, averaging (1.159). Dividend Yield (0.043) settles around the average of (0.018) among similar stocks. P/S Ratio (0.464) is also within normal values, averaging (1.057).
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 41 (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 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 90, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a retailer of consumer electronics, entertainment software and appliances
Industry SpecialtyStores
Advertisement