Best Buy Co., Inc. [NYSE:BBY]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Best Buy Co., Inc. [BBY] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in January. On average, stock market experts give BBY an Hold rating. Its stock price has been found in the range of 47.72 to 84.37. This is compared to its latest closing price of $68.85.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Best Buy Co., Inc. [BBY] is sitting at 2.68. This is compared to 1 month ago, when its average rating was 2.72.
For the quarter ending in Jan-19 Best Buy Co., Inc. [BBY] generated $14.8 billion in sales. That’s 0.74% higher than the average estimate of $14.69 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Thu 23 May (In 69 Days).
Fundamental Analysis of Best Buy Co., Inc. [BBY]
Now let’s turn to look at profitability: with a current Operating Margin for Best Buy Co., Inc. [BBY] sitting at +4.54 and its Gross Margin at +23.23, this company’s Net Margin is now 2.50%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 40.29, and its Return on Invested Capital has reached 26.30%. Its Return on Equity is 42.32, and its Return on Assets is 11.18. These metrics all suggest that Best Buy Co., Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Best Buy Co., Inc. [BBY] has generated a Total Debt to Total Equity ratio of 41.98. Similarly, its Total Debt to Total Capital is 29.57, while its Total Debt to Total Assets stands at 10.76. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 40.29, and its Long-Term Debt to Total Capital is 28.38. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 6.46 and its Total Debt to EBITDA Value is 0.51. The Enterprise Value to Sales for this firm is now 0.41, and its Total Debt to Enterprise Value stands at 0.09.
Similarly, this company’s Receivables Turnover is 41.55 and its Total Asset Turnover is 3.28. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.46 and its Current Ratio is 1.18. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Best Buy Co., Inc. [BBY] has 270.18M shares outstanding, amounting to a total market cap of $18.60B. Its stock price has been found in the range of 47.72 to 84.37. At its current price, it has moved by -17.99% from its 52-week high, and it has moved 44.99% from its 52-week low.
This stock’s Beta value is currently 0.96, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 74.33. This RSI suggests that Best Buy Co., Inc. is currently Overbought.
Conclusion: Is Best Buy Co., Inc. [BBY] a Reliable Buy?
Shares of Best Buy Co., Inc. [BBY], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.