From Nasdaq: 2024-05-29 22:27:55

Best Buy (BBY) is set to report fiscal Q1 results on May 30, with expectations of revenue and earnings slightly beating estimates. The stock has declined 7% this year, underperforming the S&P 500. Best Buy forecasts slower market growth in FY’25, with revenues of $41.3 billion to $42.6 billion and EPS between $5.75 to $6.20.

BBY stock has consistently underperformed the S&P 500 over the past three years, with returns of 2% in 2021, -21% in 2022, and -2% in 2023. In contrast, the Trefis High Quality Portfolio has outperformed the S&P each year. Trefis estimates Best Buy’s valuation at $81 a share, 13% higher than the current market price.

For Q1 2025, Best Buy’s revenues are expected to be around $9.3 billion and EPS at $1.13, beating consensus estimates slightly. In Q4 2024, the retailer’s domestic comparable sales fell by 5.1%, with revenues at $14.6 billion. Trefis forecasts full-year fiscal 2025 revenues of $42.2 billion, down 3% year-over-year. The stock price estimate is $81, 13% higher than the current market price.

Comparing returns for BBY, the S&P 500, and Trefis Reinforced Value Portfolio in May 2024, BBY had a -1% return MTD, -7% YTD, and 70% return from 2017-2024. The S&P 500 had a 5% return MTD, 11% YTD, and 136% return from 2017-2024. The Trefis Reinforced Value Portfolio had a 7% return MTD, 6% YTD, and 656% return from 2017-2024.



Read more at Nasdaq: Down 7% This Year, Will Best Buy Stock Recover Following Q1 Results?