Company Overview - Best Buy Co., Inc. has a market cap of $13.9 billion and is a leading retailer of technology products, appliances, and consumer electronics, operating through physical stores and online platforms in the U.S., Canada, and internationally [1] - The company provides delivery, installation, repair, technical support, and membership services through its stores, websites, and brands such as Best Buy, Geek Squad, Insignia, and Best Buy Health [1] Financial Performance - Best Buy is expected to announce its fiscal Q4 2026 results soon, with analysts predicting an adjusted EPS of $2.50, a decrease of 3.1% from $2.58 in the same quarter last year [2] - For fiscal 2026, analysts anticipate an adjusted EPS of $6.32, slightly down from $6.37 in fiscal 2025, but expect a growth of 7.8% year-over-year to $6.81 in fiscal 2027 [3] Stock Performance - Over the past 52 weeks, Best Buy's shares have declined by 21.3%, underperforming the S&P 500 Index's gain of 13.7% and the State Street Consumer Discretionary Select Sector SPDR ETF's return of 5.2% [4] - Shares of Best Buy increased by 5.3% on November 25 after the company reported better-than-expected Q3 2026 results, including an adjusted EPS of $1.40 and revenue of $9.67 billion, with a comparable-sales growth of 2.7% driven by strength in computing, gaming, and mobile phones [5] Analyst Ratings - The consensus view on Best Buy stock is cautiously optimistic, with a "Moderate Buy" rating overall; among 24 analysts, eight recommend "Strong Buy," 15 indicate "Hold," and one advises "Moderate Sell" [6] - The average analyst price target for Best Buy is $82.31, suggesting a potential upside of 23.7% from current levels [6]

Core Insights - Best Buy faces challenges in maintaining profitability amid a competitive landscape and shifting consumer preferences [1] - Analyst Robert F. Ohmes from BofA Securities has reiterated an Underperform rating on Best Buy shares with a price forecast of $63 [2] - The company is set to report second-quarter earnings on August 28, with expected EPS of $1.23 and enterprise comps at -0.3% [2] Financial Performance - The projected gross margin for the second quarter is 23.5%, unchanged from the previous year [3] - Selling Current Health is expected to alleviate margin pressure related to the slow adoption of hospital-at-home solutions [4] - Online sales are outpacing in-store purchases, which may negatively impact margins due to lower warranty attachment rates in online sales [4] Market Conditions - Appliance and consumer electronics sales are highly promotional, with average discounts of 13% in the second quarter [5] - The upcoming marketplace launch is expected to expand to approximately 500 vendors, which should contribute to incremental profit and be margin-accretive in FY26 [5] - Best Buy shares were down 2.16% at $72.50 at the time of publication [5]