What's Going On With Best Buy Stock Today?

Core Insights - Best Buy Co., Inc. reported second-quarter 2026 adjusted earnings of $1.28 per share, surpassing the consensus estimate of $1.21 [1] - Sales increased by 1.6% year over year to $9.44 billion, exceeding the consensus of $9.24 billion [2] Financial Guidance - The company reaffirmed its fiscal 2026 adjusted earnings per share guidance of $6.15-$6.30, compared to the consensus of $6.17 [2] Analyst Ratings and Expectations - JPMorgan analyst Christopher Horvers maintained an Overweight rating on Best Buy, raising the price target from $88 to $89 [3] - Horvers noted that June and July comparable sales were up 3%, with quarter-to-date comps running in low single digits, likely towards the high end due to anticipated post-back-to-school slowdown [3][4] Sales and Margin Outlook - Best Buy indicated that both sales and EPS are trending towards the upper end of full-year guidance [4] - The analyst believes the stock's setup has improved heading into the holiday season, with a conservative margin guide considering tariff and supply-chain efficiencies [4] Tariff and Sourcing Strategy - Blended tariff rates are increasing, but Best Buy is mitigating impacts while vendors provide support [5] - The sourcing mix includes approximately 25% from the U.S./Mexico (no tariffs), 30%-35% from China at a ~25% blended rate, and the remaining ~40% from other countries with varying tariffs [5] Market Trends and Future Projections - The pull-forward in computing, TVs, and appliances is largely complete, with a larger installed base expected to support a soft landing this year [6] - Average selling prices are anticipated to rise as AI features become mainstream in consumer electronics [6] - A credible path to a 5% operating margin over time is expected, with 6% becoming feasible when key categories, especially home theater, show positive trends [6] Stock Performance - Best Buy shares were trading higher by 1.33% to $73.63 at the time of publication [7]