Best Buy Co., Inc. engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions. The company's stores also offer appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, movies, and toys, as well as hardware and software, and virtual reality and other software products; and other products, such as baby, food and beverage, luggage, outdoor living, and sporting goods. In addition, it provides delivery, installation, memberships, repair, set-up, technical support, health-related, and warranty-related services. The company offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, Buy Mobile, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen, Home, TechLiquidators, and Yardbird brands, as well as domain names comprising bestbuy.com, currenthealth.com, lively.com, techliquidators.com, yardbird.com, and bestbuy.ca. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was incorporated in 1966 and is headquartered in Richfield, Minnesota.

Best Buy combines strong return on capital with noticeably weaker margins and liquidity than the average company in the industry. P/E, P/S, and P/FCF look moderately low relative to the median, which supports the idea of undervaluation, but P/B is significantly above the industry level and limits the upside from revaluation. ROE, ROA, ROI, and return on tangible equity are well above industry levels and have generally improved in recent periods, indicating good capital quality and efficient asset use. At the same time, net profit margin and operating margin remain below the median and do not show a convincing breakout, while gross margin has barely changed over the year, meaning operating leverage is limited. The balance sheet looks acceptable: debt/equity is below the industry average, long-term debt is stable, and cash on hand has increased, but the quick ratio remains weak, indicating tight short-term liquidity. The current ratio is only slightly above 1, so the margin of safety in working capital is small. Revenue and gross profit have generally remained stable, without pronounced sustainable growth, while EBITDA and operating income fluctuate, which does not justify an aggressive increase in valuation. Shareholders’ equity has increased significantly, supporting financial stability, but at the same time the high book value valuation makes the stock less cheap than P/E might suggest. Dividend yield has fallen to zero, removing one of the important support factors for an income-oriented investor. Overall, the fundamentals are more good than weak, but not strong enough to justify a meaningful increase in the target price. For a conservative assessment, it would be reasonable to slightly lower the forecast, taking into account weak liquidity, the absence of dividend support, and high sensitivity to consumer demand.

Best Buy Co., Inc.

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Средний индекс, незначительно упал. Рынок на стороне быков.

Medium index, slightly down. The market is on the bulls' side.

Слабый индекс, незначительно упал

High profitability and moderate valuation multiples support BBY, but weak liquidity, zero dividend yield, and a high P/B ratio limit upside potential.

Best Buy Co., Inc. BBY raised its fiscal 2027 outlook after a better-than-expected second quarter, shifting attention to whether its improving profit model can hold through the second half. Stronger sales trends are now being reinforced by newer earnings streams.
Marketplace and Best Buy Ads are contributing to gross-margin expansion, while core categories remain supportive. Memory inflation, tougher computing comparisons and higher operating investments still limit how much of that benefit may reach the bottom line.
Best Buy Co., Inc. Price, Consensus and EPS Surprise
BBY's Guidance Raise Resets FY27 Expectations
Best Buy lifted fiscal 2027 revenue guidance to $42.3-$42.8 billion from $41.2-$42.1 billion. Adjusted earnings guidance increased to $6.70-$6.90 per share from $6.30-$6.60.
The company also raised its adjusted operating income rate forecast to 4.4-4.5% from 4.3-4.4%. Comparable sales are now expected to increase 1.9-3%, versus the prior range of a 1% decline to 1% growth.
Best Buy's Margin Story Leans on New Profit Streams
Domestic gross margin expanded 60 basis points to 24% in the second quarter. The improvement reflected Marketplace, Best Buy Ads and about $34 million of tariff refunds, partly offset by lower product margin rates.
Management expects the fiscal 2027 gross profit rate to improve about 30-40 basis points, led by Ads and Marketplace. The outlook assumes similar tariff refunds in the third quarter.
BBY's Marketplace and Ads Businesses Are Scaling
Domestic Marketplace gross merchandise value reached about $300 million in the second quarter. Best Buy raised its full-year Marketplace expectation to $1.3 billion after stronger-than-anticipated performance.
Best Buy Ads is expected to grow 10% in fiscal 2027 after roughly $900 million in collections last year. Walmart Inc. WMT reported 38% global advertising growth and more than 50% marketplace net sales growth in its latest quarter. Target Corporation TGT said non-merchandise sales rose more than 20%, reflecting strength in Roundel, Target Circle 360 and Target+.
Best Buy's Core Categories Support the Higher Outlook
Computing, home theater and emerging categories were the largest weighted contributors to domestic comparable sales growth. Computing recorded its 10th consecutive quarter of positive comparable sales growth, while domestic TV sales rose more than 10%.
Management expects phones, TVs and emerging categories to grow in the second half. Major appliances also returned to slight sales growth, although the recovery still depends on pricing, availability, delivery speed and installation.
BBY Still Has Cost and Comparison Risks
Industry-wide memory cost increases are raising computing prices. Computing average selling prices rose in the mid-teens in the second quarter while unit volumes fell in the high single digits, showing demand sensitivity to higher price points.
Computing growth is expected to slow as Best Buy laps two years of gains and a particularly strong prior-year third quarter. Annual adjusted SG&A is planned to increase about 20 basis points, which could absorb part of the gross-margin benefit.
BBY's Hold Signal Tempers the Upbeat Outlook
The bottom line is that Best Buy has raised the earnings bar as new profit streams scale and core category trends improve. The second-half test is whether Ads and Marketplace can keep supporting profitability while computing and operating costs become less favorable.
BBY currently carries a Zacks Rank #3 (Hold). It also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those favorable Style Scores reflect attractive characteristics across several investing styles, but they complement the Zacks Rank. With a Hold rank, the combined signal supports a measured near-term view. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BBY Raises FY27 Outlook as Ads and Marketplace Lift Profitability

Best Buy Co., Inc. BBY has a stronger earnings setup, but investors must weigh that improvement against a valuation above its historical norm. Higher guidance, positive estimate revisions and stronger cash generation support further progress.
Memory-cost inflation, promotion-sensitive consumers and a forward multiple above its five-year median keep the risk-reward balance from becoming one-sided. Better fundamentals now have to justify a higher price.
Best Buy Co., Inc. Price, Consensus and EPS Surprise
BBY's Earnings Picture Is Improving
The Zacks Consensus Estimate for fiscal 2027 earnings is $6.79 per share, above $6.43 in fiscal 2026. The fiscal 2027 earnings estimate has moved 3.8% higher over the past four weeks.
BBY's latest quarterly earnings surprise was 7.3%. That result adds to recent estimate momentum and strengthens the case that the earnings trajectory is improving.
Best Buy's Higher Guidance Raises the Earnings Bar
Best Buy raised fiscal 2027 revenue guidance to $42.3-$42.8 billion and adjusted earnings guidance to $6.70-$6.90 per share. Comparable sales are now expected to increase 1.9-3%, versus the prior outlook ranging from a 1% decline to 1% growth.
The higher outlook reflects first-half performance and momentum entering the second half. It also raises the execution bar because expectations for the fiscal year have improved.
BBY's Valuation Now Sits Above Its Five-Year Median
BBY trades at 12.5X forward 12-month earnings, above its five-year median of 11.5X. The multiple remains within its five-year range of 7.0X to 15.5X, but the stock is no longer below its historical midpoint.
The PEG ratio stands at 2.10. Continued earnings and margin progress could support the multiple, but a setback would leave less valuation cushion.
Best Buy Still Faces Demand and Margin Risks
Industry-wide memory cost increases are lifting computing prices. In the second quarter, computing average selling prices rose in the mid-teens while unit volumes fell in the high single digits, showing sensitivity to higher price points.
Consumers remain value-focused and attracted to sales events, while appliance improvement still requires pricing and service investments. The annual adjusted SG&A rate is planned to increase about 20 basis points, which could limit margin upside.
Target Corporation TGT reported 3.8% second-quarter comparable sales growth and said it had lowered prices on more than 10,000 frequently purchased items over the past year. That emphasis on value reinforces the promotional backdrop across retail.
Walmart Inc. WMT reported 23% global e-commerce growth in its latest quarter and highlighted price, speed and convenience as customer priorities. Its continued price investments underscore the competitive standard for omnichannel retailers.
BBY's Cash Flow and Yield Add Defensive Support
Best Buy generated $1.30 billion of operating cash flow in the first half, up from $783 million a year earlier. Cash and cash equivalents reached $2.26 billion at quarter-end compared with $1.46 billion a year ago.
BBY's dividend yield is about 4.4%, while the company continues to expect approximately $300 million of fiscal 2027 share repurchases. That cash return profile adds support as the operating recovery develops.
BBY's Hold Signal Balances Strong Style Scores
The bottom line is that BBY's earnings outlook has improved, but the valuation no longer offers the same historical discount. Better estimates, higher guidance and cash flow support the shares, while memory inflation and a higher multiple argue for a measured entry stance.
The stock currently carries a Zacks Rank #3 (Hold). BBY also has a Value Score of A, a Growth Score of A, a Momentum Score of A and a VGM Score of A. Those favorable grades complement rather than override the Zacks Rank, supporting a balanced near-term view instead of an outright buy signal. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Is BBY a Buy as Growth Improves but Valuation Climbs Above Its Median?

Shares of Best Buy Co., Inc. BBY have gained 17.9% in the past three months, raising the bar for further upside. The advance now has better operating support, with earnings, revenues and comparable sales improving in the latest quarter. Broader category growth and higher fiscal 2027 guidance strengthen the case for sustained momentum. Memory-cost inflation, tougher computing comparisons and a valuation above recent norms keep the investment picture balanced.
Best Buy Co., Inc. Price, Consensus and EPS Surprise
BBY's Three-Month Rally Meets Stronger Fundamentals
Second-quarter adjusted earnings rose 15% to $1.47 per share and beat the Zacks Consensus Estimate of $1.37. Revenues increased 3.6% to $9.78 billion and topped the consensus mark of $9.56 billion, while enterprise comparable sales advanced 4.1%.
Best Buy raised fiscal 2027 revenue guidance to $42.3-$42.8 billion and adjusted earnings guidance to $6.70-$6.90 per share. Comparable sales are now expected to increase 1.9-3%, up from the prior range of a 1% decline to 1% growth.
Best Buy's Q2 Beat Adds Weight to the Momentum
Domestic comparable sales rose 4.5%, while domestic online comparable sales increased 5.1%. The domestic gross profit rate expanded 60 basis points to 24%, helped by Marketplace, Best Buy Ads and about $34 million of tariff refunds, partly offset by lower product margin rates.
Online revenues represented 33.1% of domestic revenues, up from 32.8% a year earlier. That mix reinforces Best Buy's omnichannel traction as Marketplace and Best Buy Ads scale alongside retail operations.
BBY's Growth Mix Is Broadening Beyond Computing
Computing delivered its 10th consecutive quarter of positive comparable sales growth, while mobile phones posted a sixth straight quarter of growth. Home theater also strengthened, with domestic TV sales rising more than 10% year over year.
Combined sales of AI glasses, trading cards and health rings more than doubled from a year earlier and contributed about one percentage point to comparable sales growth. Best Buy Business sales also increased 21%, adding another growth source.
Best Buy Faces Memory Inflation and Tougher Comps
Computing average selling prices increased in the mid-teens as unit volumes fell in the high single digits. Higher memory costs are flowing into the assortment, creating elasticity risk even as Best Buy uses promotions, financing, trade-ins and earlier inventory purchases to preserve key price points.
Management expects computing growth to slow in the second half as comparisons get tougher. Traditional gaming also declined as Best Buy lapped the prior-year Switch 2 launch, underscoring the category's exposure to uneven product cycles.
BBY's Valuation Leaves Less Room for Disappointment
BBY trades at 12.5X forward 12-month consensus EPS estimate, above its five-year median of 11.5X and slightly above the Zacks sub-industry's 12.3X. That premium leaves less valuation cushion if second-half sales or margin progress falls short.
Target Corporation TGT, one of BBY's retail peers, trades at 14.9X forward earnings. Walmart Inc. WMT, another peer, trades at 36.8X. Those comparisons place BBY below both peers on this measure, even as its own multiple sits above its five-year median.
BBY's Hold Signal Meets Strong Style Scores
The bottom line is that BBY's rally has broader fundamental support, but the recent move already reflects some of that progress. Memory inflation, tougher comparisons and a higher-than-median valuation argue for a measured view of additional upside.
The stock currently carries a Zacks Rank #3 (Hold). BBY also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those scores indicate favorable characteristics across multiple investing styles, but they complement rather than override the Zacks Rank, supporting a balanced near-term stance. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Can BBY Sustain Its 17.9% Three-Month Rally as Growth Drivers Broaden?

Uber Technologies UBER and Wakefern Food Corp. have expanded their partnership, enabling customers to shop from more than 375 Wakefern-affiliated supermarkets across the Northeast through Uber Eats. Participating banners include ShopRite, Price Rite Marketplace, The Fresh Grocer, Morton Williams, Dearborn Market, Di Bruno Bros., Fairway Market and Gourmet Garage. Uber Eats is the online food ordering and delivery platform of the company.
Through the Uber Eats app, customers can order from their preferred neighborhood supermarkets, many of which are family-owned and operated. Available products include fresh produce, meat, seafood, pantry staples, prepared foods and household essentials. Shoppers can choose between on-demand and scheduled delivery.
To mark the launch, Uber Eats is offering eligible customers discounts of up to 30% on their first order from participating Wakefern banners. Uber One members will be charged no delivery fee on eligible orders, along with other exclusive savings.
The collaboration gives Wakefern’s family-owned supermarkets another channel to serve communities across the Northeast. It allows customers to access the fresh products, value and neighborhood-focused service they expect, while benefiting from greater speed and convenience.
The launch also advances Uber Eats’ ongoing expansion in grocery and retail delivery. Adding Wakefern’s banners strengthens Uber’s grocery marketplace as demand for on-demand delivery of everyday essentials continues to grow across North America.
The partnership reflects rising consumer demand for flexible grocery-shopping options that maintain product selection and value. By bringing more than 375 supermarkets, including well-known banners such as ShopRite and Fairway Market, onto its platform, Uber Eats can support everything from full weekly grocery purchases to urgent, last-minute needs through a single app.
Last year, Uber inked a deal with retailer Best Buy BBY for on-demand delivery. This deal brought consumer electronics from more than 800 stores to the Uber Eats platform. Following the tie-up, Best Buy customers throughout the United States are eligible to order a wide range of electronics, appliances and tech essentials on Uber Eats for delivery to their doorsteps.
Apart from the deal with Best Buy, Uber’s agreements with discount retailers Dollar General DG and Dollar Tree DLTR were also on the same customer-friendly lines. The tie-up with Dollar General ensured that its more than 14,000 locations arrived on the Uber Eats platform. Following the association with Dollar General, customers are using the Uber Eats app to order food, beverages and other essentials.
The deal with Dollar Tree has also enhanced UBER’s retail delivery capabilities by adding nearly 9,000 stores to the Uber Eats platform. The partnership with Dollar Tree ensures that customers across states can easily access affordable items of everyday use, ranging from party supplies to cosmetics and home essentials for on-demand delivery.
UBER’s Share Price Performance, Valuation and Estimates
Shares of UBER have gained in low single digits (% wise) over the past three months. UBER’s shares have outperformed the Zacks Internet-Services industry over the same time frame.
3- Month Price Comparison
From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.26X. UBER is inexpensive compared with its industry.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for Uber’s earnings has been revised over the past 90 days.
Uber’s Zacks Rank
Uber currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Is Uber's Wakefern Food Deal on Grocery Delivery a Growth Catalyst?

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Best Buy Inc (Symbol: BBY) has taken over the #414 spot from Zebra Technologies Corp. (Symbol: ZBRA), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Best Buy Inc (Symbol: BBY), the market cap is now $19.03 billion, versus Zebra Technologies Corp. (Symbol: ZBRA) at $17.28 billion.
Below is a chart of Best Buy Inc versus Zebra Technologies Corp. plotting their respective size rank within the S&P 500 over time (BBY plotted in blue; ZBRA plotted in green):
Below is a three month price history chart comparing the stock performance of BBY vs. ZBRA:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full BBY market cap history vs. the full ZBRA market cap history.
At the closing bell, BBY is down about 1.2%, while ZBRA is down about 2.8% on the day Tuesday.
Further BBY Research:

Best Buy Takes Over #414 Spot From Zebra Technologies

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, LyondellBasell Industries NV (Symbol: LYB) has taken over the #416 spot from Best Buy Inc (Symbol: BBY), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of LyondellBasell Industries NV (Symbol: LYB), the market cap is now $20.52 billion, versus Best Buy Inc (Symbol: BBY) at $19.03 billion.
Below is a chart of LyondellBasell Industries NV versus Best Buy Inc plotting their respective size rank within the S&P 500 over time (LYB plotted in blue; BBY plotted in green):
Below is a three month price history chart comparing the stock performance of LYB vs. BBY:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full LYB market cap history vs. the full BBY market cap history.
At the closing bell, LYB is up about 1.7%, while BBY is trading flat on the day Tuesday.
Further LYB Research:

LyondellBasell Industries Takes Over #416 Spot From Best Buy

In trading on Monday, precious metals shares were relative laggards, down on the day by about 1.9%. Helping drag down the group were shares of Aura Minerals, down about 4.4% and shares of Harmony Gold Mining off about 3.7% on the day.
Also lagging the market Monday are music & electronics stores shares, down on the day by about 1.7% as a group, led down by Upbound Group, trading lower by about 3.2% and Best Buy Inc (BBY), trading lower by about 2.8%.

Monday Sector Laggards: Precious Metals, Music & Electronics Stores

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value Score
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Best Buy (BBY)
Founded in 1966 and headquartered in Richfield, MN, Best Buy Co., Inc. (BBY) is one of North America's largest specialty retailers of consumer electronics, computing products, appliances, entertainment products, mobile phones and technology-related services. The company operates as an omnichannel retailer, combining its extensive store network with e-commerce capabilities to provide customers with a seamless shopping experience across physical and digital channels.
BBY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.23; value investors should take notice.
For fiscal 2027, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.18 to $6.74 per share. BBY boasts an average earnings surprise of +6.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, BBY should be on investors' short list.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Best Buy (BBY) is a Top-Ranked Value Stock: Should You Buy?

Skip to main content
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.
© 2026, Nasdaq, Inc. All Rights Reserved.
My Quotes

Best Buy (BBY) Q2 2027 Earnings Call Transcript

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Occidental Petroleum Corp (Symbol: OXY), where a total of 44,181 contracts have traded so far, representing approximately 4.4 million underlying shares. That amounts to about 54.8% of OXY's average daily trading volume over the past month of 8.1 million shares. Especially high volume was seen for the $61 strike call option expiring August 28, 2026, with 8,904 contracts trading so far today, representing approximately 890,400 underlying shares of OXY. Below is a chart showing OXY's trailing twelve month trading history, with the $61 strike highlighted in orange:
Walmart Inc (Symbol: WMT) saw options trading volume of 127,057 contracts, representing approximately 12.7 million underlying shares or approximately 46.2% of WMT's average daily trading volume over the past month, of 27.5 million shares. Especially high volume was seen for the $103 strike call option expiring August 28, 2026, with 7,875 contracts trading so far today, representing approximately 787,500 underlying shares of WMT. Below is a chart showing WMT's trailing twelve month trading history, with the $103 strike highlighted in orange:
And Best Buy Inc (Symbol: BBY) saw options trading volume of 15,146 contracts, representing approximately 1.5 million underlying shares or approximately 43.9% of BBY's average daily trading volume over the past month, of 3.5 million shares. Especially high volume was seen for the $82.50 strike call option expiring September 18, 2026, with 2,828 contracts trading so far today, representing approximately 282,800 underlying shares of BBY. Below is a chart showing BBY's trailing twelve month trading history, with the $82.50 strike highlighted in orange:
For the various different available expirations for OXY options, WMT options, or BBY options, visit StockOptionsChannel.com.
Further OXY Research:

Indicator	TTM Median
P/E	11.05 18.27
Price/Sales	0.40 0.68
P/B	5.48 1.73
P/FCF	9.63 13.56

Indicator	TTM Median
ROE	42.82 14.93
ROA	7.42 5.11
ROI	30.80 8.85
Net Worth	17.58 0.84
Quick Ratio	0.40 0.86
Current Ratio	1.12 1.39

Indicator	TTM Median
Net Profit Margin	3.01 5.79
Operating Margin	3.68 8.49
Gross Margin	22.52 39.55
Return on tangible equity	56.18 21.78

Indicator	TTM Median
EPS	1.47 0.55
EPS Forecast	1.37 0.50
Revenue	8.94B 193.00M
Gross Profit	2.10B —
EBITDA	564.00M —

Best Buy Co., Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue