Core Insights - Best Buy Co., Inc. has significantly underperformed the broader market, with a 13% decline over the past year compared to a 14.1% increase in the S&P 500 Index [2] - The company's stock has also lagged behind the SPDR S&P Retail ETF, which gained about 1% over the same period [3] - Factors contributing to this underperformance include increased online competition and a normalization of gadget spending post-pandemic [4] Financial Performance - For Q2, Best Buy reported an adjusted EPS of $1.28, exceeding Wall Street expectations of $1.22, and revenue of $9.4 billion, surpassing forecasts of $9.2 billion [4] - The company anticipates full-year adjusted EPS between $6.15 and $6.30, with revenue expected to range from $41.1 billion to $41.9 billion [4] - Analysts predict a 1.9% decline in EPS for the current fiscal year, estimating it at $6.25 on a diluted basis [5] Analyst Ratings and Price Targets - Among 24 analysts covering Best Buy, the consensus rating is a "Moderate Buy," with eight "Strong Buy" ratings, 15 "Holds," and one "Moderate Sell" [5] - Truist Financial Corporation has maintained a "Hold" rating and raised the price target to $79, indicating a potential upside of 1.7% from current levels [6] - The mean price target of $80.79 suggests a 4% premium, while the highest target of $95 indicates a potential upside of 22.3% [6]

Company Overview - Best Buy Co., Inc. is valued at $15.7 billion and operates as a specialty retailer selling consumer electronics and various appliances [1] - The company is based in Richfield, Minnesota, and has numerous stores across the U.S. and Canada [1][2] Stock Performance - Best Buy's stock reached a 52-week high of $103.48 on September 30, 2024, but is currently trading 28.7% below that peak [3] - Over the past three months, the stock has gained 8.8%, underperforming the Consumer Discretionary Select Sector SPDR Fund (XLY), which surged 14.3% [3] - Year-to-date, the stock has declined 14.1% and has plummeted 25.6% over the past 52 weeks, while XLY has increased by 7.2% and 24.8% respectively [4] Financial Results - In Q2, Best Buy reported a 1.6% growth in comparable sales, the highest in three years, with a topline of $9.4 billion, reflecting a 1.6% year-over-year increase [5] - Despite better-than-expected results, the stock price fell 3.7% following the Q2 earnings release [5] - Non-GAAP EPS declined 4.5% year-over-year to $1.28, although it surpassed consensus estimates by 4.9% [5] Income and Future Outlook - On a GAAP basis, net income fell 36.1% year-over-year to $186 million, largely due to $114 million spent on restructuring efforts [6] - The company expresses uncertainty regarding a substantial turnaround in the coming quarters, citing concerns over the impact of tariffs on its business [6]