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 looks like a mature retailer with strong returns on capital, but without a clear cushion for an aggressive re-rating. P/E, P/S, and P/FCF are below the industry medians, which supports the case for a modest undervaluation based on earnings and cash flow. At the same time, P/B is noticeably above the median, which usually means the market is already assigning a high value to the quality of capital and is not leaving much of a discount in case the cycle deteriorates. ROE, ROA, ROI, and return on tangible equity are significantly above the industry and have remained strong in recent periods, which is the main positive for the valuation. Profit margin and operating margin, however, are below industry benchmarks, and net margin is also weaker than the median, so earnings quality does not look unequivocally best in the sector. Gross margin has remained fairly stable at around 22.5–22.7%, but it is also below the industry level, which limits the potential for valuation expansion. The debt burden looks comfortable: debt/equity is below the median, long-term debt has been relatively stable, and cash on hand has increased significantly, reducing financial risk. Liquidity is not ideal, though: the quick ratio is low, and the current ratio is only around 1.1, meaning there is a buffer, but not a large one. Revenue and absolute profit remain substantial, and net income and operating income generally support the business’s resilience, although the trend across periods is uneven. Dividend yield has declined compared with last year, so this factor currently does not provide a strong positive boost to the valuation. Overall, the fundamentals support the current price more than they justify significant upside, but there is also no strong discount visible. For an investor, this implies a moderately positive but cautious view: the company is high quality in terms of capital returns and balance sheet strength, but margin and liquidity do not support a substantial increase in the target valuation.

Best Buy Co., Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Рынок на стороне быков.

Weak index, significantly down. The market is on the bulls' side.

Средний индекс, значительно упал. Отток средств из лонгов резко увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased sharply and is at a high level.

Strong capital returns and moderate debt support BBY, but weak margins, low liquidity, and a high P/B ratio limit revaluation potential.

With inflation remaining high, the Federal Reserve unanimously increased its benchmark interest rate by 25 basis points earlier this month. This marks its first rate hike in three years. In a bid to contain persistent inflation amid rising oil prices and unending tensions in the Middle East, the target range was raised to 3.75-4% from 3.5-3.75%.
With the economy operating near full employment, Fed chair Kevin Warsh said that the Fed could address inflation without dampening economic growth or the labor market, projecting another hike in the current year. Moreover, the inflation outlook has deteriorated and is not likely to return to the Fed’s 2% target until after 2028.
Given the uncertain backdrop, investors should pay heed to broker advice to design a portfolio likely to give them handsome returns. The wrong choice of stocks may result in one’s hard-earned money going down the drain. To avoid such an unfortunate scenario, investors should keep an eye on broker-favorite stocks like Beazer Homes USA BZH, Best Buy BBY, Alaska Air Group ALK, RXO, Inc. RXO and AMN Healthcare AMN.
Since brokers closely track the stocks they cover, they revise their earnings estimates after thoroughly assessing the positive and negative implications of an event for the company concerned. Consequently, these estimate revisions serve as an important indicator of a stock’s price prospects. Given their extensive expertise, brokers are regarded as investment professionals with in-depth knowledge and a clear understanding of the intricacies of the investment landscape. Therefore, investors would be well advised to pay attention to such carefully researched information to reduce the risk of seeing their hard-earned money invested in the stock market go down the drain.
Screening Parameters
# (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).
% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).
Price-to-Sales = Bottom 10% (The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks concerning this ratio).
Current Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).
Com/ADR/Canadian= Com (This eliminates the ADR and Canadian stocks).
Here are five of the 10 stocks that made it through the screen:
Beazer Homes, currently sporting a Zacks Rank #1 (Strong Buy), is headquartered in Atlanta, GA. It is a leading national homebuilder in energy-efficient construction. You can see the complete list of today’s Zacks #1 Rank stocks here.
Beazer Homes surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters and missed the mark once, with the average beat being 29.9%. The Zacks Consensus Estimate for current-quarter revenues of this construction company has increased 5.2% year over year.
Best Buy, currently carrying a Zacks Rank #3 (Hold), is benefiting from innovation-led demand across computing, mobile, home theater and emerging technology categories, while Marketplace and Best Buy Ads are expanding higher-margin profit streams.
Investments in smaller stores, digital commerce, AI shopping tools and membership should broaden customer reach and deepen engagement. Cash generation supports ongoing capital returns and strategic spending. Best Buy surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average beat being 5.1%.
Alaska Air Group’s demand backdrop remains supportive and integration work with Hawaiian is broadening the network and loyalty platform. Fleet renewal and product upgrades should help unit revenue resilience over time.
The company’s loyalty platform is becoming more centralized with the rollout of Atmos Rewards, which management expects to improve program utility across a broader network and partner set. Loyalty program revenue remains a meaningful contributor to the overall mix, supported by co-branded card activity. Alaska Air Group currently carries a Zacks Rank #3. ALK surpassed the Zacks Consensus Estimate for earnings in two of the last four quarters and missed the mark twice. The average beat is 71.6%.
RXO offers improving cyclical and company-specific tailwinds, but near-term execution risk tempers upside. Tightening capacity and rising contract rates are lifting unit economics, while AI-driven automation, faster digital bidding and leaner headcount support structural cost leverage.
Expanding pipelines in Managed Transportation, Middle Mile and Last Mile add diversification and cross-sell potential, with implementations slated for the back half. RXO currently carries a Zacks Rank #3. The company has surpassed the Zacks Consensus Estimate for earnings in one of the last four, matched estimates once and missed the mark twice. The average miss is 22.9%.
AMN Healthcare benefits from a broad workforce platform, MSP relationships and technology investments that support clinician fulfillment and client efficiency. Demand in travel nursing and allied staffing has improved, while search and international staffing add diversification.
AI-enabled recruiting, WorkWise enhancements and growing Passport adoption should support execution as clients seek flexible workforce models. AMN Healthcarecurrently carries a Zacks Rank #3. AMN surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters and missed the mark once. The average beat is 96.6%.
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5 Broker-Liked Stocks to Watch Amid Fed's First Rate Hike in 3 Years

(RTTNews) - Wednesday, Best Buy Co., Inc. (BBY) and Amazon.com, Inc. (AMZN) announced an expanded multiyear Fire TV partnership, which will bring the Fire TV experience to Insignia TVs and create more connected TV advertising opportunities through Best Buy Ads.
Under the partnership, Best Buy Ads will use Amazon Ads' programmatic technology from February 2027, including AI-powered tools, to help brands plan, activate, optimize and measure advertising campaigns.
The company noted that Best Buy Ads and Amazon Ads will help brands reach relevant audiences with video and display Fire TV ads on televisions.
In pre-market hours, AMZN was trading at $255.66, up 0.27 percent on the Nasdaq, and BBY was trading at $95.00, up 0.16 percent on the NYSE.

Best Buy Extends Multi-Year Fire TV Partnership With Amazon

Key Points
The Chairman Emeritus disposed of 600,000 shares (300,000 sold and 300,000 gifted) on September 16, 2026.
The transaction was executed entirely through indirect entities, including a revocable trust, with Schulze retaining ~11.3 million shares indirectly.
The activity represents a focused liquidity event for the founder, who maintains a 5.0% ownership interest in the company.
Richard M. Schulze, Chairman Emeritus of Best Buy Co., Inc. (NYSE:BBY), reported the sale of 300,000 shares of common stock and another 300,000 shares gifted in an SEC Form 4 filing.
Transaction summary
Transaction value
~$27.8 million
Shares sold
300,000
Shares gifted
300,000
Post-transaction shares (indirectly held)
~11,300,000
Post-transaction value
~$1.05 billion
Transaction value based on SEC Form 4 weighted average sale price ($92.51); post-transaction value based on September 16, 2026 market close ($92.45).
Key questions
What was the structural nature of this disposition?
The transaction consisted of a 300,000-share open-market sale at a weighted average price of $92.51 and a gift of 300,000 shares. Both components were handled through indirect vehicles, including a revocable trust and a family foundation, rather than through Schulze's direct personal holdings.
How extensive are the remaining indirect entities?
Schulze continues to hold equity through seven distinct indirect channels, including 9,230,936 shares in a revocable trust, 1,153,938 shares in a spousal GRAT, and 702,903 shares via a limited partnership. Additional holdings are maintained in a 401(k), an IRA, and trusts for his spouse and her irrevocable trust.
What is the recent performance context for Best Buy?
The stock was priced at $92.45 at the September 16, 2026 market close, having achieved a 25% one-year total return as of that date. The transaction occurred as Best Buy continues its operations as a prominent technology retailer across the United States and Canada.
How is the data for the retirement accounts determined?
The reported balance of 70,140 shares held in the 401(k) account reflects periodic adjustments and was based on a plan statement current as of September 15, 2026. This calculation includes adjustments exempt from standard reporting under Rule 16b-3(c).
Company Overview
Share Price (as of market close 2026-09-18)
$92.85
Market Capitalization
$19.7 billion
Revenue (TTM)
$42.2 billion
Net Income (TTM)
$1.3 billion
Company Snapshot
Best Buy operates as a leading technology retailer offering a comprehensive product portfolio including computing devices, mobile phones, networking equipment, tablets, e-readers, and smartwatches, with significant revenue generated through direct sales and carrier commissions on mobile devices.
The company generates revenue through its retail operations, leveraging a multi-channel distribution strategy that combines physical store locations with digital commerce capabilities to serve technology consumers across the United States and Canada.
Best Buy primarily targets technology-focused consumers and households seeking consumer electronics, personal computing devices, and mobile technology, serving both individual customers and commercial accounts through its extensive retail network.
Best Buy Co., Inc. operates as a prominent specialty retailer with a market cap of $19.7 billion. The company maintains a competitive advantage through its extensive product selection, established retail footprint, and omnichannel distribution capabilities across North America.
Best Buy's strategic positioning in the consumer technology sector, combined with its scale and operational efficiency, enables the company to serve as a primary destination for consumer electronics and technology products.
What this transaction means for investors
Best Buy founder and Chairman Emeritus Richard Schulze's September 16 transactions involved gifting 300,000 shares from a revocable trust, and selling 300,000 shares from a family foundation. This appears to be a discretionary transaction, with Schulze capitalizing on a soaring stock price. Best Buy shares hit a 52-week high of $95.85 the day after Schulze's sale.
Despite the disposal, the Chairman Emeritus retains a massive equity stake in the company. His millions of shares are worth about $1 billion, ensuring his continued alignment with shareholder interests.
Best Buy's stock is up thanks to strong business performance. In the company's fiscal second quarter, ended Aug. 1, it reported revenue of $9.8 billion, up from $9.4 billion in the prior year as a result of same-store sales growing 4%.
Moreover, Best Buy’s diluted earnings per share (EPS) jumped up 70% year over year to $1.48, and the company raised its adjusted diluted EPS guidance. These factors galvanized the increase in share price.
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Best Buy's Chairman Emeritus Sells 300,000 Shares for $27.8 Million as the Stock Soars

Best Buy Co., Inc. BBY is advancing its technology-centered retail model through artificial intelligence (AI), experiential stores and vendor collaboration. Its strategy links digital convenience with associate expertise and differentiated demonstrations. Ask Blue, ChatGPT commerce integration and Meta Labs are designed to improve product discovery and reinforce its omnichannel position.
These efforts are supported by strong performance. Second-quarter fiscal 2027 revenues increased 3.6% year over year to $9.8 billion, while enterprise comparable sales rose 4.1%. Computing led category growth, with the Best Buy Business team’s sales increasing 21% from the prior-year period.
Product innovation was a demand catalyst. Computing recorded its tenth consecutive quarter of positive comparable sales, supported by replacement needs and innovation. Sales from emerging categories, including artificial intelligence glasses, health rings and trading cards, more than doubled. Home theater delivered its strongest sales growth since the second quarter of fiscal 2022.
Best Buy is extending this momentum across physical and digital channels. The company is more than halfway through implementing 50 Meta Labs, which showcase AI glasses and virtual-reality solutions. Domestic online revenues grew 5.1% on a comparable basis to $3 billion and represented 33.1% of domestic revenues. Ask Blue offers comparisons, compatibility guidance and support.
Ads and Marketplace provide a growth avenue. Domestic Marketplace gross merchandise value reached approximately $300 million in the quarter, prompting management to raise its full-year forecast to $1.3 billion. Best Buy Ads collections are on track to grow 10% from last year’s $900 million level. Industrywide memory-cost increases, higher computing prices and high-single-digit unit declines remain concerns, but the AI ecosystem and digital reach support Best Buy’s growth strategy.
BBY’s Price Performance, Valuation & Estimates
Over the past three months, Best Buy’s stock has risen 26.5% compared with the industry’s 23.7% growth.
From a valuation standpoint, BBY trades at a trailing price-to-sales ratio of 0.48, slightly above the industry’s average of 0.46. It has a Value Score of A.
The Zacks Consensus Estimate for Best Buy’s current and next financial years’ earnings implies year-over-year growth of 5.6% and 6.8%, respectively. Earnings estimates for fiscal 2027 and 2028 have been revised upward by 22 cents and 17 cents, respectively, over the past 30 days.
BBY’s Zacks Rank & Key Picks
Best Buy currently carries a Zacks Rank #3 (Hold).
Five Below, Inc. FIVE is a Pennsylvania-based specialty value retailer offering trend-right merchandise priced mostly at $5 and below, with a select range priced above $5. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Five Below’s current fiscal-year earnings and sales suggests growth of 57.6% and 20.1%, respectively, from the year-ago actuals. FIVE delivered a trailing four-quarter average earnings surprise of 68.3%.
Target Corporation TGT offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Target's current fiscal-year earnings and sales suggests growth of 37.8% and 4.8%, respectively, from the year-ago actuals. TGT delivered a trailing four-quarter average earnings surprise of 10.5%.
Ross Stores Inc. ROST operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales indicates growth of 32.7% and 12.4%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 11.2%.
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Best Buy's AI Push Drives Digital Growth & Retail Momentum

Uber Technologies UBER and Costco COST have significantly expanded their U.S. partnership, making the latter delivery through Uber Eats available to millions of additional customers across 47 states, compared with 17 states previously. Nearly 600 Costco locations are now accessible through the Uber Eats platform, offering both on-demand and scheduled delivery services. Uber Eats is the online food ordering and delivery platform of Uber.
Costco members can use Uber Eats to order a broad range of products, including fresh produce, bulk groceries, household essentials and Costco-exclusive merchandise. The expanded service provides members with another convenient option for completing weekly shopping, preparing for gatherings or addressing last-minute needs.
The nationwide rollout also brings one of the country’s largest retailers to Uber Eats’ growing marketplace. The expansion highlights Uber’s ability to help major retailers broaden their digital reach and meet consumers’ increasing demand for convenient delivery options.
As part of the expanded partnership, eligible Costco members can receive a 50% discount on an annual Uber One membership during the first year, followed by a 20% discount in subsequent years. For a limited period, participating Costco stores and Costco.com will also offer Uber and Uber Eats gift cards worth $100 for $79.99.
Consumers can additionally purchase a Costco membership directly through Uber Eats for a limited time and receive 30% off their first eligible Costco order. Uber One members can access delivery without Uber fees on eligible grocery and retail orders exceeding $60, subject to applicable conditions.
Customers can place an order by searching for Costco in the Uber Eats app, selecting a nearby location and adding products to their cart. Costco members can link their membership accounts during checkout before choosing on-demand or scheduled delivery. Orders can then be tracked in real time through the app. The U.S. expansion builds on the companies’ existing international relationship. Costco is also available through Uber Eats in Canada, Mexico, Japan, Taiwan, France and Spain.
The expanded partnership should strengthen Uber’s grocery and retail-delivery business by adding greater selection and nearly nationwide access to a highly recognized retailer. Costco’s large membership base and strong customer loyalty could attract more users, increase order frequency and support higher transaction volumes on Uber Eats. The membership discounts and fee benefits may also encourage Uber One adoption and improve customer retention. Additionally, selling Costco memberships through the app creates another customer-acquisition channel and deepens Uber’s role in consumers’ everyday shopping.
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. After the tie-up, Best Buy customers across the United States can order a wide range of electronics, appliances and tech essentials on Uber Eats for delivery to their doorsteps.
UBER’s Share Price Performance, Valuation and Estimates
Shares of UBER have declined in the 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
Image Source: Zacks Investment Research
From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.25X. 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.
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Is Uber's Deal With Costco on Nationwide Delivery a Game Changer?

(RTTNews) - Monday, Best Buy Co., Inc. (BBY) announced plans to offer immersive experiences with technology brands across new product categories in its stores, along with savings events throughout the season.
Best Buy is promoting deals across gaming, computing, home theater, and additional categories during the holiday period.
My Best Buy Plus and My Best Buy Total members can earn rewards on purchases, receiving 1% back on every eligible transaction. Members using their My Best Buy Credit Card can earn 6% back on qualifying purchases.
Plus and Total members also receive access to exclusive offers and deals throughout the holiday season.
In pre-market hours, BBY was trading at $91.17, up 0.41 percent on the NYSE.

Best Buy Introduces Season-Long Savings And Rewards Events

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.
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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.
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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.
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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

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Sep 26	TTM	Median
P/E	10.94	—	14.20	—	14.68	14.68	17.39
Price/Sales	0.30	0.38	0.43	0.40	0.44	0.44	0.66
P/B	4.04	—	5.64	5.48	5.83	5.83	1.68
P/FCF	7.81	—	10.26	9.63	10.60	10.60	12.74

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Sep 26	TTM	Median
ROE	40.05	—	42.82	—	—	42.82	15.36
ROA	7.42	—	—	—	—	7.42	4.97
ROI	28.47	—	30.80	—	—	30.80	8.47
Net Worth	12.61	—	18.35	—	—	18.35	0.82
Quick Ratio	0.40	—	—	—	—	0.40	0.85
Current Ratio	1.12	—	1.12	—	—	1.12	1.38

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Sep 26	TTM	Median
Net Profit Margin	2.73	—	3.01	—	—	3.01	5.79
Operating Margin	3.68	—	—	—	—	3.68	8.36
Gross Margin	22.52	—	22.68	—	—	22.68	39.57
Return on tangible equity	56.18	—	58.33	—	—	58.33	22.12

Best Buy Co., Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Sep 26	TTM	Median
EPS	1.28	—	1.47	1.47	—	1.47	0.52
EPS Forecast	1.22	—	1.37	1.37	—	1.37	0.51
Revenue	8.94B	—	9.78B	—	—	9.78B	193.00M
Gross Profit	2.10B	—	—	—	—	2.10B	—
EBITDA	564.00M	—	—	—	—	564.00M	—