Best Buy Co., Inc. (BBY), headquartered in Richfield, Minnesota, retails consumer electronics, home office products, entertainment software, appliances, and related services through its retail stores, as well as its website. Valued at $12.6 billion by market cap, the company also retails pre-recorded home entertainment products through retail stores. The retail giant is expected to announce its fiscal first-quarter earnings for 2027 in the near term.
Ahead of the event, analysts expect BBY to report a profit of $1.22 per share on a diluted basis, up 6.1% from $1.15 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect BBY to report EPS of $6.50, up 1.1% from $6.43 in fiscal 2026. Its EPS is expected to rise 7.9% year over year to $7.01 in fiscal 2028.
BBY stock has notably underperformed the S&P 500 Index’s ($SPX) 30.6% gains over the past 52 weeks, with shares down 10.5% during this period. Similarly, it notably underperformed the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 22.3% gains over the same time frame.
Best Buy’s underperformance stems from both macro and company-specific pressures. Persistent inflation and higher borrowing costs have curbed consumer appetite for big-ticket electronics, weighing on comparable sales. Structural headwinds including intensifying competition and supply constraints in key categories have further dampened investor sentiment. Ongoing tariff concerns have also raised costs and contributed to a muted outlook.
Analysts’ consensus opinion on BBY stock is cautious, with a “Hold” rating overall. Out of 24 analysts covering the stock, six advise a “Strong Buy” rating, 16 give a “Hold,” one recommends a “Moderate Sell,” and one advocates a “Strong Sell.” BBY’s average analyst price target is $72.89, indicating a potential upside of 20.6% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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