From Nasdaq: 2024-12-09 07:30:00

Best Buy Co. Inc. (NYSE: BBY) missed Q3 earnings expectations with EPS of $1.26 and revenue of $9.45 billion, causing BBY stock to drop over 9%. Analysts have lowered price targets, but UBS Group AG (NYSE: UBS) still sees a 29% upside potential with a price target of $115.

Despite the Q3 miss, Best Buy stock is up 14.5% in 2024. Same-store sales were down 2.8%, leading to lowered full-year sales projections. CEO Corie Barry noted a consumer focus on essentials, but expects an increase in traffic with Black Friday deals.

Best Buy’s brick-and-mortar model remains strong, with online revenue accounting for only a third of total revenue. CEO Barry mentioned increased in-store traffic post-election, hinting at a potentially strong holiday season for physical retailers.

Tariffs on products from China and Mexico could lead consumers to make purchases sooner, benefiting BBY stock in the short term. With a 4.19% dividend yield and potential for growth in 2025, BBY stock presents value and growth opportunities for investors.



Read more at Nasdaq:: Here’s Why Best Buy Stock Could Be a Gift for Investors in 2025