Best Buy (BBY, $79.00) beats Q3 expectations
Best Buy posted third quarter earnings that crushed analysts’ expectations.
The consumer electronics retail company’s adjusted earnings for the quarter came in at $1.38, well above analysts’ expectations of $1.03 per share.
Revenue of $10.59 billion also topped consensus of $10.31 billion expected.
Comparable sales decreased by -10.4%, less sharp vs. - 12.9% that analysts expected( according to FactSet) . Best Buy’s Chief Financial Officer Matt Bilunas had anticipated a more than -12.1% drop in the second quarter.
During a call with investors, CEO Corie Barry said sales decreased across most of Best Buy’s product categories and the largest decrease was experienced by computing and home theater. However, she also mentioned that compared to the same quarter in 2019, its computing revenue is +23% higher and its appliances revenue remains +37% higher (according to a CNBC report).
BBY in -1.66% downward trend, sliding for three consecutive days on May 24, 2023
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where BBY declined for three days, in of 268 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 50-day moving average for BBY moved below the 200-day moving average on May 10, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
The Aroon Indicator for BBY entered a downward trend on May 17, 2023. 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 Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 52 cases where BBY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 26, 2023. You may want to consider a long position or call options on BBY as a result. In of 91 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 May 26, 2023. Looking at past instances where BBY's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
BBY moved above its 50-day moving average on May 26, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BBY advanced for three days, in of 358 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
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 (5.821) is normal, around the industry mean (14.052). P/E Ratio (12.579) is within average values for comparable stocks, (25.028). Projected Growth (PEG Ratio) (1.959) is also within normal values, averaging (2.437). Dividend Yield (0.048) settles around the average of (0.037) among similar stocks. P/S Ratio (0.368) is also within normal values, averaging (68.774).
The Tickeron SMR rating for this company is (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 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 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 76, placing this stock worse than average.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
