The Zacks Retail and Wholesale sector has primarily struggled in 2022, down more than 20% and underperforming the S&P 500 by a wide margin.
A commonly-recognized company in the realm, Best Buy BBY, is slated to unveil Q3 earnings on November 22nd, before market open.
Best Buy Company is a multinational specialty retailer of consumer electronics, home office products, entertainment software, communication, food preparation, wellness, health, security, appliances, and related services.
Currently, the company carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of an A. How does everything else stack up heading into the release? Let’s take a closer look.
Share Performance & Valuation
BBY shares have sailed through rough waters in 2022, down more than 25% and underperforming the general market by a notable amount.
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Over the last month, however, BBY shares have tacked on 10% in value, easily outpacing the S&P 500.
Image Source: Zacks Investment Research
While BBY shares are in the red year-to-date, the near-term price action tells us buyers have stepped up as of late.
The company’s valuation multiples don’t appear stretched, further reinforced by its Style Score of an A for Value.
BBY’s 11.7X forward earnings multiple is well beneath its 13.2X five-year median and reflects a 53% discount relative to the Zacks Retail and Wholesale sector.
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Quarterly Estimates
Analysts have been silent for the quarter to be reported over the last several months, with the Zacks Consensus EPS Estimate of $1.03 suggesting a 50% Y/Y decrease in quarterly earnings.
Image Source: Zacks Investment Research
The company’s top-line is also undergoing some turbulence; the Zacks Consensus Sales Estimate of $10.3 billion indicates a Y/Y decline of roughly 13%.
Quarterly Performance
Best Buy has an impressive earnings track record, exceeding bottom-line estimates in nine of its last ten quarters. Just in its latest print, the retailer registered a sizable 22.3% EPS beat.
Revenue results have also been positive, with BBY exceeding sales expectations in eight of its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
BBY shares reside in the red year-to-date but have outperformed the S&P 500 over the last month, indicating that buyers have arrived.
The company’s shares aren’t expensive, with its forward earnings multiple well below its five-year median and Zacks sector average.
Analysts have been silent regarding their earnings outlook, with estimates indicating Y/Y declines in revenue and earnings.
Further, the retailer has consistently exceeded quarterly estimates, with a sizable bottom-line beat coming in its latest release.
Heading into the print, Best Buy, Inc. BBY carries a Zacks Rank #3 (Hold) with an overall VGM Score of an A.
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Best Buy Co., Inc. (BBY): Free Stock Analysis Report
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