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Best Buy Co. Inc. (BBY) Stock

Best Buy Co. Inc. Stock Details, Movements and Public Alerts

Best Buy (BBY): The $19B Electronics Retailer Facing Tariff Headwinds Under CEO Corie Barry

When CEO Corie Barry (Best Buy chief since June 2019) reported Q4 fiscal 2025 earnings, the company beat expectations but stock fell 13% as fiscal 2026 guidance disappointed. The culprit? Tariffs—55% of Best Buy products sourced from China, 20% from Mexico, creating massive cost pressure. CEO Barry warned price increases for American consumers are highly likely. Best Buy operates 1,000+ stores selling TVs, laptops, smartphones, appliances, and Geek Squad services, but faces structural headwinds: Amazon undercutting prices and showrooming behavior. Q3 fiscal 2025 saw softer than expected sales attributed to macro uncertainty and election distraction. Fiscal 2026 guidance lowered to $41.1-$41.9B revenue (from $41.4-$42.2B) and $6.15-$6.30 EPS (down from $6.20-$6.60). At $19B market cap generating $43B revenue, BBY trades at compressed 0.44x sales reflecting tariff and consumer spending risks.

52-Week Range

$90.84 - $53.55

-8.09% from high · +55.91% from low

Avg Daily Volume

16,620

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

20.96

Near market average

Forward P/E

12.39

Earnings expected to grow

PEG Ratio

1.14

Reasonably valued

Price to Book

5.89

EV/EBITDA

9.52

EPS (TTM)

$3.61

Price to Sales

0.39

Beta

1.22

Similar volatility to market

How is BBY valued relative to its earnings and growth?
Best Buy Co. Inc. trades at a P/E ratio of 20.96, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 12.39 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.14 indicates reasonable value when growth is considered.
What is BBY's risk profile compared to the market?
With a beta of 1.22, Best Buy Co. Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 5.89 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

1.87%

Operating Margin

3.87%

EBITDA

$2.58B

Return on Equity

26.70%

Return on Assets

6.98%

Revenue Growth (YoY)

1.60%

Earnings Growth (YoY)

-35.10%

How profitable and efficient is BBY's business model?
Best Buy Co. Inc. achieves a profit margin of 1.87%, meaning it retains $1.87 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 3.87% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 26.70% and ROA at 6.98%, the company generates strong returns on invested capital.
What are BBY's recent growth trends?
Best Buy Co. Inc.'s revenue grew by 1.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 35.10% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against SPECIALTY RETAIL industry averages for proper context.

Dividend Information

Dividend Per Share

$3.78

Dividend Yield

4.96%

Ex-Dividend Date

Sep 18, 2025

Dividend Date

Oct 9, 2025

What dividend income can investors expect from BBY?
Best Buy Co. Inc. offers a dividend yield of 4.96%, paying $3.78 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 18, 2025.
How reliable is BBY's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Best Buy Co. Inc. pays $3.78 per share in dividends against earnings of $3.61 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Oct 9, 2025.

Company Size & Market

Market Cap

$16.0B

Revenue (TTM)

$41.60B

Revenue/Share (TTM)

$195.25

Shares Outstanding

210.10M

Book Value/Share

$12.91

Asset Type

Common Stock

What is BBY's market capitalization and position?
Best Buy Co. Inc. has a market capitalization of $16.0B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 210.10M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SPECIALTY RETAIL industry, it competes with other firms in this sector.
How does BBY's price compare to its book value?
Best Buy Co. Inc.'s book value per share is $12.91, while the current stock price is $83.49, resulting in a price-to-book (P/B) ratio of 6.47. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$79.76

4.47% downside potential

Analyst Recommendations

Strong Buy

2

Buy

8

Hold

17

Sell

0

Strong Sell

1

How reliable are analyst predictions for BBY?
28 analysts cover BBY with 36% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $79.76 implies -4.5% downside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on BBY?
Current analyst recommendations:2 Strong Buy, 8 Buy, 17 Hold, 01 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 1, 2025, 06:34 AM

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Best Buy (BBY) Stock Analysis 2025: Complete Investment Guide

Best Buy Co. Inc. (NYSE: BBY) operates as North America's largest consumer electronics retailer with 1,000+ stores generating $43B annual revenue from TVs, computers, smartphones, appliances, gaming, and Geek Squad tech support. CEO Corie Barry faces dual challenges: tariff cost pressures (55% products from China) and soft consumer electronics demand. Q4 fiscal 2025 beat expectations but fiscal 2026 guidance lowered citing tariff headwinds. Best Buy's competitive position rests on omnichannel capabilities, Geek Squad services, and vendor partnerships. However, Amazon price pressure and tariff-driven price increases threaten profitability.

Business Model & Competitive Moat

Best Buy generates revenue from selling consumer electronics and services (Geek Squad, Total Tech Support $199/year subscriptions). Corie Barry focuses on omnichannel excellence and vendor partnerships (Apple/Samsung stores-within-stores). The moat rests on physical stores for big-ticket items and Geek Squad differentiation. However, Amazon and showrooming erode this advantage. Tariffs compound challenges—55% China sourcing means price increases of $100-$200 on laptops/TVs, reducing demand.

Financial Performance

MetricValueContext
Market Cap$19BCompressed valuation
Annual Revenue$43BLargest U.S. electronics retailer
FY2026 Revenue$41.1-$41.9BLowered from $41.4-$42.2B
FY2026 EPS$6.15-$6.30Down from $6.20-$6.60
China Sourcing55%25% tariff exposure
Mexico Sourcing20%Additional tariff risk

Fiscal 2026 guidance cut reflects tariff reality—55% China sourcing exposed to 25% tariffs. The company must raise prices (lose volume) or absorb costs (lose profit). At $19B market cap on $43B revenue (0.44x sales), BBY trades at distressed valuation.

Growth Catalysts

  • •Tariff Resolution: Trade deal eliminates cost pressure
  • •AI PC Cycle: Laptop upgrades in 2025-2026
  • •Total Tech Growth: Recurring subscription revenue
  • •Appliance Share: Gaining from Sears/JC Penney exits
  • •Samsung/Apple: Premium brand partnerships

Risks & Challenges

  • •Tariff Costs: $5-10B annual increase destroying profitability
  • •Demand Weakness: Big-ticket purchases deferred
  • •Amazon Competition: Undercuts by 10-15%
  • •Showrooming: Browse in-store, buy online
  • •Direct-to-Consumer: Brands bypass Best Buy
  • •Real Estate: 1,000+ stores with fixed lease costs

Who Is This Stock Suitable For?

Perfect For

  • ✓Value investors betting on tariff resolution
  • ✓Dividend income seekers
  • ✓Contrarian retail investors
  • ✓Short-term earnings traders

Less Suitable For

  • ✗Growth investors (0-2% growth)
  • ✗Tariff-averse investors
  • ✗E-commerce bulls
  • ✗Risk-averse investors

Investment Thesis

Bull case assumes tariff resolution, AI PC cycle, and consumer recovery. If Best Buy navigates tariffs without margin compression and grows Total Tech, stock could re-rate to 0.6-0.8x sales (40-80% upside). Bear case envisions permanent tariffs causing demand destruction, Amazon gaining share, and EPS falling below guidance. Most investors should wait for tariff clarity. For contrarians, BBY merits 2-3% allocation betting on resolution.

Conclusion

Best Buy faces tariff challenges with 55% China sourcing exposed to 25% duties. Fiscal 2026 guidance cut reflects this reality. Investment case hinges on tariff resolution. At 0.44x sales, BBY prices pessimism but uncertainty remains high. Wait for concrete tariff resolution or Q1 results before investing.
Bull Case
40-80% upside if tariffs resolved
Base Case
Flat to 20% either direction
Bear Case
20-40% downside if tariffs persist

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