Best Buy (BBY, US$ 65.79) forecasts estimate beating earnings for Q2
Best Buy forecast estimate-beating Q2 sales and profit on Thursday as more and more customers opted for the electronic retailer’s tech support services and continue shopping on its website and app.
The company clocked in better-than-expected profit in Q1 but shied away from disclosing full-year estimates keeping in mind the potential impact of U.S-China dispute, especially the latest imposition of tariffs on $200 billion worth Chinese goods.
Post the announcement, shares of the company rose 2.1% in premarket trade. Key highlights of the Q1 include 40 points gross profit expansion to 23.7%, 14.5% rise of domestic online sales to $1.31 billion accounting for 15.4% of total quarterly revenue, 1.1% same-store sales rise versus an expected 0.9% increase, earnings per share at $1.02 versus estimated 86 cents per share. Further, the company indicated that it expects an adjusted profit for Q2 to be in the range of $0.95 to $1 per share, and total marginal revenue rise to $9.14 billion in line with analysts’ expectations.
The tech support business has been a signature element of outgoing Chief Executive Officer Hubert Joly’s turnaround strategy that led Best Buy out of years of falling same-store sales.
An increasing share of Best Buy’s sales also comes from online, where it has been investing more to boost delivery coupled with its “click and collect” business that helps shoppers buy products online and collect them later from the stores.
BBY in upward trend: price may ascend as a result of having broken its lower Bollinger Band on November 19, 2024
BBY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 38 cases where BBY's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
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 62 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 December 24, 2024. You may want to consider a long position or call options on BBY as a result. In of 88 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 December 24, 2024. Looking at past instances where BBY's MACD turned positive, the stock continued to rise in of 54 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 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
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 November 25, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put 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 (5.760) is normal, around the industry mean (12.393). P/E Ratio (14.373) is within average values for comparable stocks, (36.657). Projected Growth (PEG Ratio) (1.507) is also within normal values, averaging (2.650). Dividend Yield (0.045) settles around the average of (0.034) among similar stocks. P/S Ratio (0.411) is also within normal values, averaging (19.235).
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 consistent 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 well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better 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
General Information
a retailer of consumer electronics, entertainment software and appliances
Industry SpecialtyStores