Best Buy Co., Inc (BBY) is a leading specialty retail business based in the US. It opened the day at $114.14 after a previous close of $113.52. During the day the price has varied from a low of $113.35 to a high of $116.44. The latest price was $113.382 (25 minute delay). Best Buy is listed on the NYSE and employs 125,000 staff. All prices are listed in US Dollars.
Since the stock market crash in March caused by coronavirus, Best Buy's share price has had significant positive movement.
Its last market close was $120.83, which is 25.30% up on its pre-crash value of $90.26 and 151.18% up on the lowest point reached during the March crash when the shares fell as low as $48.105.
If you had bought $1,000 worth of Best Buy shares at the start of February 2020, those shares would have been worth $594.59 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $1,417.34.
|52-week range||$47.2757 - $124.2072|
|50-day moving average||$109.4353|
|200-day moving average||$104.4539|
|Wall St. target price||$122.98|
|Dividend yield||$2.2 (2.15%)|
|Earnings per share (TTM)||$6.562|
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
|1 week (2021-01-08)||5.40%|
|1 month (2020-12-18)||11.21%|
|3 months (2020-10-16)||-5.00%|
|6 months (2020-07-17)||28.90%|
|1 year (2020-01-17)||26.06%|
|2 years (2019-01-17)||96.09%|
|3 years (2018-01-17)||52.68%|
|5 years (2016-01-15)||318.23%|
Valuing Best Buy stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Best Buy's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Best Buy's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 16x. In other words, Best Buy shares trade at around 16x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
However, Best Buy's P/E ratio is best considered in relation to those of others within the specialty retail industry or those of similar companies.
Best Buy's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.4117. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Best Buy's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Best Buy's PEG ratio in relation to those of similar companies.
Best Buy's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping $3.2 billion (£2.4 billion).
The EBITDA is a measure of a Best Buy's overall financial performance and is widely used to measure a its profitability.
To put Best Buy's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||$45.5 billion|
|Operating margin TTM||5.26%|
|Gross profit TTM||$10 billion|
|Return on assets TTM||7.84%|
|Return on equity TTM||47.9%|
|Market capitalisation||$26.6 billion|
TTM: trailing 12 months
There are currently 5.3 million Best Buy shares held short by investors – that's known as Best Buy's "short interest". This figure is 5% up from 5.1 million last month.
There are a few different ways that this level of interest in shorting Best Buy shares can be evaluated.
Best Buy's "short interest ratio" (SIR) is the quantity of Best Buy shares currently shorted divided by the average quantity of Best Buy shares traded daily (recently around 4.3 million). Best Buy's SIR currently stands at 1.25. In other words for every 100,000 Best Buy shares traded daily on the market, roughly 1250 shares are currently held short.
To gain some more context, you can compare Best Buy's short interest ratio against those of similar companies.
However Best Buy's short interest can also be evaluated against the total number of Best Buy shares, or, against the total number of tradable Best Buy shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Best Buy's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Best Buy shares in existence, roughly 20 shares are currently held short) or 0.0263% of the tradable shares (for every 100,000 tradable Best Buy shares, roughly 26 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Best Buy.
Find out more about how you can short Best Buy stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Best Buy.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 16.47
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Best Buy's overall score of 16.47 (as at 01/01/2019) is excellent – landing it in it in the 10th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Best Buy is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare Best Buy's total ESG risk score against those of similar companies.
Environmental score: 9.12/100
Best Buy's environmental score of 9.12 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Best Buy is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 9.67/100
Best Buy's social score of 9.67 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Best Buy is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 8.68/100
Best Buy's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Best Buy is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, Best Buy scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Best Buy has, for the most part, managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||16.47|
|Total ESG percentile||10.32|
|Environmental score percentile||8|
|Social score percentile||8|
|Governance score percentile||8|
|Level of controversy||2|
Dividend payout ratio: 23.4% of net profits
Recently Best Buy has paid out, on average, around 23.4% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.15% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Best Buy shareholders could enjoy a 2.15% return on their shares, in the form of dividend payments. In Best Buy's case, that would currently equate to about $2.2 per share.
While Best Buy's payout ratio might seem low, this can signify that Best Buy is investing more in its future growth.
Best Buy's most recent dividend payout was on 5 January 2021. The latest dividend was paid out to all shareholders who bought their shares by 14 December 2020 (the "ex-dividend date").
Best Buy's dividend payout ratio is perhaps best considered in relation to those of similar companies.
Best Buy's shares were split on a 3:2 basis on 4 August 2005. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Best Buy shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for Best Buy shares which in turn could have impacted Best Buy's share price.
Over the last 12 months, Best Buy's shares have ranged in value from as little as $47.2757 up to $124.2072. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Best Buy's is 1.5659. This would suggest that Best Buy's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
To put Best Buy's beta into context you can compare it against those of similar companies.
Best Buy Co., Inc. retails technology products in the United States, Canada, and Mexico. The company operates in two segments, Domestic and International. Its stores provide computing and mobile phones, such as computing and peripherals, e-readers, networking products, tablets, and wearables, as well as mobile phones comprising related mobile network carrier commissions; consumer electronics, including digital imaging, health and fitness, home theater, portable audio, and smart home products; and entertainment products consisting of drones, peripherals, movies, music, and toys, as well as gaming hardware and software, and virtual reality and other software products. The company's stores also offer appliances, such as dishwashers, laundry appliances, ovens, refrigerators, blenders, coffee makers, and vacuums; and other products, such as beverages, snacks, and sundry items, as well as baby products, luggage, and sporting goods. In addition, it provides services comprising consultation, design, delivery, installation, memberships, protection plans, repair, set-up, and technical support services, as well as connected health services for aging consumers. The company offers its products through stores and Websites under the BestBuy, Best Buy Express, Best Buy Mobile, Geek Squad, Best Buy Health, CST, GreatCall, Lively, Magnolia, Pacific Kitchen, Home, greatcall.com, bestbuy.ca and bestbuy.com.mx brands, as well as through mobile applications and call centers. As of February 1, 2020, it had approximately 1,175 large-format and 56 small-format stores. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was founded in 1966 and is headquartered in Richfield, Minnesota.
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