Best Buy Co. Inc. (BBY) Stock

Best Buy Co. Inc. trades at a P/E ratio of 16.64, 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 11.10 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.67 indicates reasonable value when growth is considered.

With a beta of 1.27, 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 5.22 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Best Buy Co. Inc. achieves a profit margin of 2.13%, meaning it retains $2.13 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 3.74% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 30.20% and ROA at 7.51%, the company generates strong returns on invested capital.

Best Buy Co. Inc.'s revenue declined by 0.90% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 15.90% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against RETAIL-RADIO, TV & CONSUMER ELECTRONICS STORES industry averages for proper context.

Best Buy Co. Inc. offers a dividend yield of 5.57%, paying $3.77 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 6/18/2025.

The dividend sustainability can be assessed through the payout ratio - Best Buy Co. Inc. pays $3.77 per share in dividends against earnings of $4.10 per share, resulting in a payout ratio of 91.95%. 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 7/10/2025.

Best Buy Co. Inc. has a market capitalization of $14.42B, 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 211.35M shares outstanding, the company's ownership is relatively concentrated. As a participant in the RETAIL-RADIO, TV & CONSUMER ELECTRONICS STORES industry, it competes with other firms in this sector.

Best Buy Co. Inc.'s book value per share is $13.08, while the current stock price is $67.52, resulting in a price-to-book (P/B) ratio of 5.16. 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.

29 analysts cover BBY with 38% 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 $79.28 implies 17.4% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:4 Strong Buy, 7 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.

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