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Diversify Advisory Services LLC bought a new stake in shares of Best Buy Co., Inc. (NYSE:BBY – Free Report) during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 22,483 shares of the technology retailer’s stock, valued at approximately $1,984,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in BBY. Kintegral Advisory LLC increased its position in Best Buy by 0.6% in the third quarter. Kintegral Advisory LLC now owns 23,543 shares of the technology retailer’s stock worth $2,100,000 after purchasing an additional 133 shares during the last quarter. Tema ETFs LLC grew its stake in shares of Best Buy by 6.5% during the second quarter. Tema ETFs LLC now owns 2,365 shares of the technology retailer’s stock valued at $179,000 after buying an additional 145 shares during the last quarter. B. Metzler seel. Sohn & Co. AG boosted its stake in shares of Best Buy by 1.0% during the second quarter. B. Metzler seel. Sohn & Co. AG now owns 14,613 shares of the technology retailer’s stock valued at $1,109,000 after purchasing an additional 151 shares during the period. Ashurst Perkins Coie Trust Co grew its stake in Best Buy by 75.1% in the 3rd quarter. Ashurst Perkins Coie Trust Co now owns 394 shares of the technology retailer’s stock worth $35,000 after acquiring an additional 169 shares in the last quarter. Finally, Center for Financial Planning Inc. raised its position in Best Buy by 4.9% during the 1st quarter. Center for Financial Planning Inc. now owns 4,319 shares of the technology retailer’s stock valued at $277,000 after purchasing an additional 200 shares in the last quarter. 80.96% of the stock is currently owned by institutional investors.

Best Buy Price Performance Shares of NYSE BBY opened at $99.85 on Friday. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.12 and a quick ratio of 0.41. The stock has a fifty day moving average price of $89.34 and a 200 day moving average price of $78.59. Best Buy Co., Inc. has a 1-year low of $55.10 and a 1-year high of $100.58. The company has a market cap of $20.94 billion, a PE ratio of 16.61, a P/E/G ratio of 2.49 and a beta of 1.26.

Best Buy (NYSE:BBY – Get Free Report) last released its earnings results on Thursday, August 27th. The technology retailer reported $1.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.39 by $0.08. The company had revenue of $9.78 billion for the quarter, compared to analysts’ expectations of $9.59 billion. Best Buy had a return on equity of 48.14% and a net margin of 3.01%. The firm’s quarterly revenue was up 3.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.28 EPS. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. Sell-side analysts forecast that Best Buy Co., Inc. will post 6.81 EPS for the current year. Best Buy Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th were issued a $0.96 dividend. The ex-dividend date of this dividend was Thursday, September 17th. This represents a $3.84 annualized dividend and a yield of 3.8%. Best Buy’s dividend payout ratio is 63.89%.

Insider Buying and Selling at Best Buy In other Best Buy news, EVP Kathleen Scarlett sold 116,062 shares of the firm’s stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $92.15, for a total transaction of $10,695,113.30. Following the completion of the transaction, the executive vice president directly owned 116,173 shares in the company, valued at approximately $10,705,341.95. This trade represents a 49.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Chairman Richard M. Schulze sold 300,000 shares of Best Buy stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $92.51, for a total transaction of $27,753,000.00. The disclosure for this sale is available in the SEC filing. 0.50% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades A number of equities analysts recently commented on the stock. Jefferies Financial Group downgraded shares of Best Buy from a “buy” rating to a “hold” rating and reduced their price objective for the stock from $89.00 to $85.00 in a research note on Wednesday, August 5th. UBS Group reiterated a “neutral” rating and set a $90.00 price target (up from $86.00) on shares of Best Buy in a research note on Friday, August 28th. Wall Street Zen raised shares of Best Buy from a “hold” rating to a “buy” rating in a report on Sunday, October 11th. Truist Financial set a $100.00 price objective on shares of Best Buy in a research report on Thursday, August 27th. Finally, Bank of America started coverage on shares of Best Buy in a research note on Monday, August 3rd. They issued an “underperform” rating and a $80.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $85.90.

View Our Latest Stock Analysis on BBY

Best Buy Profile (Free Report)

Best Buy Co, Inc is a specialty retailer of technology products and services headquartered in Richfield, Minnesota. The company sells consumer electronics, computing and mobile products, entertainment products, appliances, furniture, and related accessories through its retail stores, websites, and other sales channels.

Best Buy also provides technology-related services, including product installation, repair, technical support, delivery, and in-home consultation. Its services are offered through brands and operations such as Geek Squad, while the company also provides membership and protection programs designed to support customers after purchase.

The company serves customers primarily in the United States and Canada.

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A strong stock as of late has been Best Buy (BBY - Free Report) . Shares have been marching higher, with the stock up 9.7% over the past month. The stock hit a new 52-week high of $99.92 in the previous session. Best Buy has gained 49.2% since the start of the year compared to the 1% move for the Zacks Retail-Wholesale sector and the 47% return for the Zacks Retail - Consumer Electronics industry.

What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 27, 2026, Best Buy reported EPS of $1.47 versus consensus estimate of $1.37.

For the current fiscal year, Best Buy is expected to post earnings of $6.81 per share on $42.67 in revenues. This represents a 5.91% change in EPS on a 2.35% change in revenues. For the next fiscal year, the company is expected to earn $7.25 per share on $43.42 in revenues. This represents a year-over-year change of 6.51% and 1.76%, respectively.

Valuation MetricsBest Buy may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Best Buy has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 14.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.7X. On a trailing cash flow basis, the stock currently trades at 8.8X versus its peer group's average of 6X. Additionally, the stock has a PEG ratio of 2.49. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Best Buy an interesting choice for value investors.

Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Best Buy currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Best Buy meets the list of requirements. Thus, it seems as though Best Buy shares could still be poised for more gains ahead.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Best Buy (BBY - Free Report) . BBY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11 right now. For comparison, its industry sports an average P/E of 12.82. Over the past 52 weeks, BBY's Forward P/E has been as high as 15.48 and as low as 8.74, with a median of 11.63.

We also note that BBY holds a PEG ratio of 1.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BBY's industry currently sports an average PEG of 2.18. Over the last 12 months, BBY's PEG has been as high as 2.54 and as low as 1.27, with a median of 1.88.

Another valuation metric that we should highlight is BBY's P/B ratio of 5.62. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.25. Over the past 12 months, BBY's P/B has been as high as 7.17 and as low as 4.28, with a median of 5.78.

Finally, investors will want to recognize that BBY has a P/CF ratio of 7.28. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BBY's current P/CF looks attractive when compared to its industry's average P/CF of 9.08. BBY's P/CF has been as high as 10.45 and as low as 5.33, with a median of 7.51, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Best Buy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBY feels like a great value stock at the moment.

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Based in Richfield, Best Buy (BBY - Free Report) is in the Retail-Wholesale sector, and so far this year, shares have seen a price change of 40.63%. The consumer electronics retailer is paying out a dividend of $0.96 per share at the moment, with a dividend yield of 4.08% compared to the Retail - Consumer Electronics industry's yield of 4.15% and the S&P 500's yield of 1.36%.

Looking at dividend growth, the company's current annualized dividend of $3.84 is up 1.1% from last year. Over the last 5 years, Best Buy has increased its dividend 5 times on a year-over-year basis for an average annual increase of 12.56%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Best Buy's current payout ratio is 57%, meaning it paid out 57% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for BBY for this fiscal year. The Zacks Consensus Estimate for 2026 is $6.81 per share, with earnings expected to increase 5.91% from the year ago period.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that BBY is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Best Buy is tapping further into a growing customer cohort: gamers.

Chief Revenue Officer Patrick McGinnis told CNBC exclusively that the electronics retailer is launching a new experience Tuesday for customers featuring gaming content, new technology and special offers, among other features. The online destination is called Best Buy Gamers and is launching in a beta version.

"Gamers are a customer that are really like no other in terms of their passion for not just the tech, the titles, but also how they want to work with each other as a community," McGinnis said. "So for us, being relevant for that customer wherever and whenever they want to interact with the thing that they love is really important."

Best Buy says millions of gamers shop at the retailer each year, including trying out games in the store and seeking advice from in-store experts. The new gaming experience, created in partnership with video game website IGN, will offer members gaming articles and reviews, live Best Buy event updates for launches and deals on new technology.

The announcement comes ahead of some of the biggest launches in gaming this year, including the Nov. 5 release of "The Legend of Zelda: Ocarina of Time," a remake from Nintendo, and the Nov. 19 launch of Take-Two Interactive's highly anticipated "Grand Theft Auto VI."

McGinnis said the timing of the rollout is "pretty perfect" given the slate of new video games over the next month, though Best Buy has been developing the new platform for over a year.

"We want to be relevant for our gaming customers, not just during the important, big tentpole periods of the calendar, like when we have these big gaming launches coming up, but really every day," he said. "We want to be there when they discover new titles and connect with the community, and not just when they're buying a big console or a new gaming title."

Best Buy has been leaning into gaming as it sees growing demand from its customers. For its fiscal first-quarter results reported in May, the company said gaming and computing was one of its biggest drivers of growth. On a call with analysts to discuss Best Buy's fiscal second quarter in August, incoming CEO Jason Bonfig said the company expects that demand for "Grand Theft Auto VI" will boost the gaming category.

Best Buy has been looking for growth drivers as the retailer tries to revitalize its business performance under Bonfig. The company has seen slumping sales and was hit by tariffs and lower consumer confidence, among other factors. Tapping into gaming could help revitalize the retailer.

McGinnis said the new gamer experience is an example of the company's strategic goals coming together.

"If you think about what those priorities are, the Gamers [beta] community is definitely a way that we're expanding and growing our reach, reaching that gaming customer," he said. "Providing a place for them to again pursue what they're most passionate about certainly is elevating our experience."

Best Buy is also leaning into in-store experiences around gaming, starting with a location in Torrance, California, next month, where Sony, Nintendo and Microsoft will come together to offer gaming experiences and activations for customers.

With the combination of physical retail and the online platform, McGinnis said, Best Buy hopes to sit at the intersection of technology, entertainment and culture within the gaming community. He said the company plans to tweak its new online experience based on feedback from its customers and continue innovating to meet its audience where it is, especially as the gaming segment continues to be one of the company's strongest performers.

"We recognize the gaming customer as incredibly passionate and wants to engage with what they love in a lot of different ways," he said. "There's observations of gaps that exist in the places and spaces where gamers are engaged, and we thought that we could build something that would really complement what they're engaging with today from a social platform perspective, not to replace those types of experiences in any way, shape or form."

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Best Buy (BBY - Free Report) Founded in 1966 and headquartered in Richfield, MN, Best Buy Co., Inc. (BBY - Free Report) is one of North America's largest specialty retailers of consumer electronics, computing products, appliances, entertainment products, mobile phones and technology-related services. The company operates as an omnichannel retailer, combining its store network with e-commerce capabilities across physical and digital channels.

BBY is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.92; value investors should take notice.

11 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.24 to $6.81 per share. BBY boasts an average earnings surprise of +6.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, BBY should be on investors' short list.

Key Takeaways Best Buy Ads targets 10% collections growth in fiscal 2027, supported by customer reach and insights.BBY raised its Marketplace GMV outlook to $1.3 billion after stronger-than-expected second-quarter results.Ads and Marketplace growth helped lift domestic gross margin 60 basis points to 24%, alongside tariff refunds. Best Buy Co., Inc. (BBY - Free Report) is strengthening its retail model by expanding the advertising and Marketplace businesses. Best Buy Ads draws on customer reach and insights, while Marketplace broadens product selection and attracts new sellers. Together, these initiatives create additional profit streams, support investments in customer experience and reinforce the company’s position as an omnichannel technology retailer.

Best Buy Ads collections are on track to grow 10% in fiscal 2027, building on $900 million last year. This momentum supports management’s strategy to advance Best Buy as a retail media, advertising and technology company. Its customer relationships and growing reach provide a foundation for connecting brands and advertising partners with shoppers.

Marketplace is delivering stronger-than-anticipated results. Domestic gross merchandise value reached approximately $300 million in the second quarter, prompting management to raise its full-year forecast to $1.3 billion. Customer ratings and return rates are in line with the first-party business. Plans to add international sellers create another expansion opportunity, opening the platform beyond sellers with a U.S. physical presence.

These businesses are contributing to margin improvement. Domestic gross profit rate rose 60 basis points year over year to 24%, with Ads and Marketplace growth among the key drivers, alongside approximately $34 million in tariff refunds. Management expects annual gross profit rate expansion of 30-40 basis points, primarily supported by continued growth in both initiatives.

The stronger Marketplace outlook has also slightly improved management’s expectations for the combined operating income contribution from Ads and Marketplace. Alongside broader business momentum, Best Buy raised its fiscal 2027 adjusted operating income rate guidance to 4.4-4.5%. Expanding seller participation, sustained advertising growth and a wider assortment position these businesses to become increasingly meaningful profit contributors while supporting investment in the core retail experience.

BBY’s Price Performance, Valuation & EstimatesOver the past six months, Best Buy stock has risen 31% as compared with the industry’s 29.6% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, BBY trades at a trailing price-to-sales ratio of 0.43, slightly above the industry’s average of 0.42. It has a Value Score of A. 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Best Buy’s current and next financial years’ earnings implies year-over-year growth of 6.1% and 7%, respectively. Earnings estimates for fiscal 2027 and 2028 have been revised upward by 3 cents and remained unchanged, respectively, over the past 30 days.

Image Source: Zacks Investment Research

BBY’s Zacks Rank & Other Key PicksBest Buy currently carries a Zacks Rank #2 (Buy).

We have highlighted three other top-ranked stocks in the retail space, namely Ross Stores Inc. (ROST - Free Report) , Target Corporation (TGT - Free Report) and Dollar Tree (DLTR - Free Report) .

Ross Stores operates as an off-price retailer of apparel and home accessories. The company also holds a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales indicates growth of 32.7% and 12.8%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 11.2%.

Target Corporation offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Target’s current fiscal-year earnings and sales implies growth of 37.8% and 5.1%, respectively, from the year-ago actuals. TGT delivered a trailing four-quarter average earnings surprise of 10.5%.

Dollar Tree is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. The company also has a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Dollar Tree's current fiscal-year earnings and sales indicates growth of 36.4% and 6.6%, respectively, from the year-ago actuals. DLTR delivered a trailing four-quarter average earnings surprise of 12.2%.

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Best Buy (BBY - Free Report) is a stock many investors are watching right now. BBY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11. This compares to its industry's average Forward P/E of 12.00. Over the past year, BBY's Forward P/E has been as high as 15.48 and as low as 8.74, with a median of 11.63.

Investors will also notice that BBY has a PEG ratio of 1.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BBY's PEG compares to its industry's average PEG of 2.04. Over the past 52 weeks, BBY's PEG has been as high as 2.54 and as low as 1.27, with a median of 1.88.

Investors should also recognize that BBY has a P/B ratio of 5.62. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.86. Over the past year, BBY's P/B has been as high as 7.17 and as low as 4.28, with a median of 5.78.

Finally, we should also recognize that BBY has a P/CF ratio of 7.28. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.51. Over the past 52 weeks, BBY's P/CF has been as high as 10.45 and as low as 5.33, with a median of 7.51.

These are only a few of the key metrics included in Best Buy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BBY looks like an impressive value stock at the moment.

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in Richfield, Best Buy (BBY - Free Report) is in the Retail-Wholesale sector, and so far this year, shares have seen a price change of 30.57%. The consumer electronics retailer is paying out a dividend of $0.96 per share at the moment, with a dividend yield of 4.39% compared to the Retail - Consumer Electronics industry's yield of 4.37% and the S&P 500's yield of 1.43%.

Looking at dividend growth, the company's current annualized dividend of $3.84 is up 1.1% from last year. Over the last 5 years, Best Buy has increased its dividend 5 times on a year-over-year basis for an average annual increase of 12.56%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Best Buy's current payout ratio is 57%, meaning it paid out 57% of its trailing 12-month EPS as dividend.

BBY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $6.82 per share, representing a year-over-year earnings growth rate of 6.07%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that BBY is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Three struggling companies keep sending dividend checks while investors wait for their repairs to kick in, but only one of them has a yield that cash flow actually supports without a fight.

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Turnaround stocks ask investors to be patient. Waiting is easier when the company continues sending a dividend check every quarter. United Parcel Service (NYSE:UPS | UPS Price Prediction) is the clearest example. Its shares have fallen 35.10% over five years, and the quarterly payout continues coming the whole time. Pfizer (NYSE:PFE) is in the same position while it rebuilds its drug pipeline. Best Buy (NYSE:BBY) shows what this trade looks like once the turnaround is mostly done. Below is how well each dividend is covered and what has to go right for each company.

UPS: Collecting a 6.99% Yield While the Network Gets Rebuilt
At $93.02, UPS yields 6.99% on an annualized dividend of $6.56 per share, which puts it in ultra-high-yield territory. The stock is down 1.70% year to date, so the market has not yet given UPS credit for the rebuild. Shareholders get paid while they wait for that credit.

Dividend Safety Read
Earnings cover the dividend, but only just. Management expects adjusted diluted EPS of about $7.22 for the full year, which is above the $6.56 payout. Trailing diluted EPS of $5.38 is below the payout because of heavy transformation charges. Cash flow is just as tight.

UPS expects about $5.5 billion of free cash flow this year, including one-time Driver Choice Program payments. It plans to pay around $5.4 billion in dividends, subject to board approval, and also has a $1.3 billion pension contribution to fund. UPS still has a buffer, ending the second quarter with $4.7 billion in cash and no outstanding commercial paper.

UPS has paid a dividend every quarter since 1999. The quarterly payment jumped from $1.02 in 2021 to $1.52 in 2022 and $1.62 in 2023. Since then the raises have been token: $1.63 in 2024, then $1.64 from 2025 onward.

What Has to Get Fixed
The main driver is two cost programs, Network Reconfiguration and Efficiency Reimagined. Together with the volume reduction from Amazon (NASDAQ:AMZN), management expects them to deliver about $3 billion in benefits this year. UPS cut roughly 2 million pieces per day of lower-quality Amazon volume and removed about $4.5 billion of related expense. It closed 45 buildings in the first half, out of nearly 150 planned closures. It now sends 68.5% of U.S. volume through automated buildings, where the cost per package runs about 28% lower. The results are starting to show. Second-quarter revenue rose 7.6% to $22.8 billion, and U.S. domestic operating profit climbed 21% to $1.2 billion. The piece still missing is volume. Management expects U.S. volume excluding Amazon to grow in the back half of the year.

Risk to Watch
Guided free cash flow only just covers the dividend. Fuel costs, tariffs or a Teamsters contract renewal that management places two years out could each eat into that thin buffer. Income investors should continues an eye on the “subject to board approval” phrasing.

Pfizer: A 6.17% Yield Backed by a Public No-Cut Pledge
Pfizer trades at $27.80, down 15.55% over five years. It yields 6.17% on a $1.72 annualized dividend. That is ultra-high-yield income from a company whose COVID windfall has mostly gone away.

Dividend Safety Read
Adjusted earnings cover the dividend comfortably. Pfizer reaffirmed full-year adjusted diluted EPS guidance of $2.80 to $3.00, well above the $1.72 payout. On a GAAP basis, trailing diluted EPS is lower at $0.76. Cash flow is the pressure point.

Implied free cash flow (operating cash flow minus capital spending) was $9.076 billion in 2025, short of the $9.771 billion Pfizer paid in dividends. Pfizer made no share repurchases in 2025 and expects none in 2026, which leaves more cash for the dividend and the pipeline. Leverage stood at 2.7 times at the end of the second quarter, and interest coverage is 5.78.

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The quarterly dividend rose every year from $0.38 in 2020 to $0.43 in 2025 and has stayed there since. Management has addressed the question of a cut head-on. On the most recent earnings call, Albert Bourla, who was chairman and CEO at the time, said: “We feel extremely confident that, even in the most stretched scenarios that we are running, we will be able to maintain our dividend.”

What Has to Get Fixed
Pfizer needs to replace shrinking COVID sales, which it now expects to be about $4 billion this year, down from an earlier $5 billion. It has three specific tools:

Cost cuts: Pfizer remains on track to deliver most of its $7.2 billion in planned net cost savings by the end of this year.
Padcev: sales of the bladder cancer drug grew over 20% last quarter, and the FDA expanded its approval to muscle-invasive bladder cancer.
Obesity: the once-a-month GLP-1 drug from the Metsera deal is targeting its first approval in 2028, after showing placebo-adjusted weight loss of up to 12.3% in a mid-stage trial.

A patent settlement also gives the heart drug Vyndamax effective U.S. exclusivity until June 2031, which pushes back one of the patent cliffs investors feared most.

Risk to Watch
The years when key patents expire (loss of exclusivity) are the real test. Generic and biosimilar competition is expected to cut about $1.5 billion from revenue this year. Bourla has said dividend growth would resume only “after the LOE period”, so income investors should plan around a flat payout for a while.

Best Buy: A 4.36% Yield on a Turnaround Already Paying Off
Best Buy is the furthest along of the three, and the stock price shows it. Shares trade at $87.93, up 36.57% year to date and 20.86% over the past year. The market is already rewarding this turnaround, so most of the waiting is over. The stock yields 4.36% on a $3.84 annualized dividend, which makes it high-yield.

Dividend Safety Read
Coverage is the strongest of the three. Best Buy raised its full-year adjusted diluted EPS guidance to $6.70 to $6.90, against that $3.84 payout, and trailing EPS is $6.01. In the fiscal year that ended in January, operating cash flow of $1.962 billion covered both $704 million of capital spending and $801 million of dividends. Cash rose 31.6% from a year earlier to $2.26 billion. Shareholders’ equity is fairly thin at $3.18 billion against $12.92 billion in liabilities. The quarterly dividend has grow every year, from $0.55 in 2020 to $0.88 in 2022 and $0.96 this year.

What Has to Get Fixed
Most of the fix is already showing up in the numbers. Comparable sales grew 4.1% last quarter, and adjusted EPS rose 15% to $1.47. The next leg depends on higher-margin profit streams. Best Buy Ads is expected to grow 10% this year after bringing in $900 million last year. The full-year sales target for Marketplace, Best Buy’s platform for outside sellers, was raised to $1.3 billion. Store formats are changing too. Best Buy is opening smaller stores in markets too small for a full-size location, and it is more than halfway through adding 50 dedicated Meta Platforms (NASDAQ:META) spaces. The International business still needs work, with comparable sales down 1.8%.

Risk to Watch
Leadership is changing hands just as expectations have grow. Corie Barry has held her final earnings call as CEO, and Jason Bonfig formally takes over on November 1, alongside new CFO Anne Braman.

What Separates Getting Paid to Wait From a Value Trap
A value trap pays its yield out of a business that continues shrinking. A real turnaround pays its yield while a specific, measurable fix takes hold. UPS has its cost programs and automated buildings, Pfizer has its savings plan and its cancer and obesity drugs, and Best Buy has already shown its fix in its comparable sales and margins. For a shortcut to tell the two apart, we put the seven warning signs that a fat yield is about to be cut in a free dividend trap guide. The dividend pays you to wait, and the driver is what makes the wait pay off.

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Wall Street has soured on UPS, General Mills, and Best Buy for very different reasons, but all three still send out checks that yield as much as 7%. Whether that income is a trap or a rare opportunity depends on…

Some of the market’s most reliable dividend checks now come from stocks investors have stopped wanting to own. UPS (NYSE:UPS | UPS Price Prediction), General Mills (NYSE:GIS) and Best Buy (NYSE:BBY) each carry a long payout record, and each has given Wall Street a different reason to hesitate: a delivery network in the middle of a rebuild, a food portfolio shrinking its way toward growth, and a retailer changing chief executives with tariffs still hanging overhead. The clearest case is General Mills, down 27.77% over the past year. The question running through all three is whether that cold shoulder has opened an income opportunity or whether the market is pricing a real problem correctly.

UPS: An Ultra-High Yield Priced for a Rebuild Still in Progress UPS lost the market’s trust over a long, difficult stretch. Shares trade at $93.95, 36.72% below where they stood five years ago, and well under the 52-week high of $116.86 after an 11.06% slide over the past month. In fairness, the stock has also climbed 21.34% over the past year off a 52-week low of $76.95, so this discount is a long-term one. The deterioration came from shrinking volume: UPS by choice walked away from Amazon packages, second-quarter volume fell 3.6%, and $1.17 billion in pre-tax transformation costs dragged GAAP EPS down to $0.71.

At a quarterly payout of $1.64, or $6.56 annualized, UPS yields 7.13%, which puts it firmly in ultra-high-yield territory. That rate has held flat through every payment in 2025 and 2026 after $1.63 in 2024, so the long climb from $0.45 in 2008 and 2009 has paused. Income investors should price this as a frozen dividend.

Coverage is tight. Trailing GAAP EPS of $5.38 sits below the annual dividend, leaving the payout looking stretched on a reported basis. Management’s adjusted numbers improve the picture: full-year adjusted EPS guidance of roughly $7.22 covers the $6.56 payout. Cash flow is thinner. UPS generated $5.470 billion in free cash flow in 2025 against dividend payments of about $5.5 billion, and first-quarter free cash flow of $1.280 billion came in under the $1,352 million paid to shareholders. The company still plans roughly $5.4 billion in dividend payments this year, subject to board approval.

The case for the payout holding rests on the back half of the transformation. Revenue per piece rose 11.3% last quarter, revenue of $22.83 billion exceeded the $21.84 billion estimate, and adjusted EPS of $1.76 beat the $1.66 consensus. UPS booked about $1.2 billion in transformation benefits in the first half and expects roughly $3 billion for the year. In its second-quarter release, CEO Carol Tomé said the company “entered the second half of the year with strong momentum” as it raised guidance. At 12 times forward earnings, the market is paying little for that recovery.

The risk: costs are running hot while the cash buffer slims. Fuel expense jumped 60.4%, purchased transportation rose 26.4%, and cash fell to $4.653 billion from $5.887 billion at year-end 2025. If savings stall, the dividend budget starts leaning on the balance sheet.

General Mills: 127 Years of Dividends Against a Shrinking Earnings Base General Mills fits the written-off label cleanly. Shares trade at $33.65, down 24.15% this year and 23.23% over ten years, far closer to the 52-week low of $31.21 than the high of $48.26. The market soured on earnings power. Management guides fiscal 2027 adjusted EPS to $3.00 to $3.20, below the $3.55 earned in fiscal 2026, with adjusted operating profit expected down 13% to 8% in constant currency. Last fiscal year also absorbed $1.75 billion in goodwill and intangible impairments, mostly tied to North America Pet, which pushed trailing GAAP EPS to -$1.64.

The quarterly dividend of $0.61 annualizes to $2.44, a 7.01% yield that also lands in ultra-high-yield territory. The company describes this as its “127th consecutive year of uninterrupted dividends.” That kind of streak is rare enough that we ranked ten similar long-run payers by valuation in a free Dividend Kings report. The raise record is real but slowing: the payout moved from $0.54 in early 2023 to $0.59, then $0.60, then $0.61, and the last five payments have all held at $0.61.

On adjusted earnings, the dividend is covered: even the $3.00 low end of guidance sits above the $2.44 annual payout. Management expects free cash flow conversion of about 95% of adjusted after-tax earnings. Fiscal 2026 free cash flow was $1.626 billion, down 29.07%, and first-quarter fiscal 2027 dividends paid totaled $330.5 million. Buybacks show where the priority sits: repurchases dropped to $500 million in fiscal 2026 from $1.2 billion a year earlier, leaving more room for the dividend.

The bull case is a defensive business trading at 12 times forward earnings while cost cuts kick in. General Mills is targeting at least $750 million in savings this fiscal year on the way to $3 billion cumulative by fiscal 2030. Second-quarter adjusted EPS of $0.75 beat the $0.72 estimate, and organic net sales were roughly flat despite the yogurt exit. In the latest earnings release, CEO Jeff Harmening said, “Based on our progress and the actions underway, we remain confident in our ability to deliver our fiscal 2027 guidance.”

The risk is input-cost inflation outpacing the savings program. Adjusted gross margin slid 90 bps to 33.3% last quarter, and management flags category growth running below its long-term historical rate. If that gap remains, the dividend stays frozen for longer.

Best Buy: A Rallying Stock That Analysts Still Won’t Embrace Best Buy breaks the pattern, and that deserves to be said simply: the stock is up 40.51% this year and 28.42% over the past twelve months, trading at $90.50, within reach of its 52-week high of $96.53. Where Best Buy looks written off is analyst sentiment. Hold ratings outnumber buys 18 to 5, and the average price target of $86.70 sits below the share price. The longer view explains the caution: shares are up just 9.11% over five years, and tariffs plus a leadership change leave analysts questioning how long the rally can run.

The quarterly dividend of $0.96 annualizes to $3.84 for a 4.2% yield: high-yield, though below the ultra-high tier of the other two. Its track record is the strongest in this group. The regular quarterly rate has stepped higher in every year of the listed record, from $0.28 in 2016 to $0.70 in 2021 and $0.96 today, although the latest raise was just 1%.

Coverage is comfortable. Raised fiscal 2027 adjusted EPS guidance of $6.70 to $6.90 sits well above the $3.84 annual dividend. Best Buy produced $1.258 billion in free cash flow in fiscal 2026 and $215 million in the first quarter of fiscal 2027. Cash rose 31.64% to $2.255 billion, and the company still plans roughly $300 million in buybacks this year on top of the dividend.

The operating momentum supports the payout. Second-quarter adjusted EPS of $1.47 beat the $1.36 estimate for a fifth straight beat, enterprise comparable sales rose 4.1%, and Domestic comps gained 4.5% on computing, home theater and AI glasses. Online sales reached 33.1% of Domestic revenue. At 14 times forward earnings, the stock still prices in modest expectations. In the second-quarter release, CEO Corie Barry said Best Buy “outperformed expectations in the second quarter.”

The risk is a leadership change at a delicate moment. Barry is stepping down, and Jason Bonfig takes over as CEO on November 1, 2026. A new chief executive can reset capital-allocation priorities, and dividend growth has already slowed to a crawl.

Which Out-of-Favor Payer Fits Your Income Plan Being out of favor has created a genuine income opening in UPS and General Mills, while Best Buy’s discount lives mostly in analyst skepticism. UPS suits those seeking a 7.13% yield who can live with a frozen payout while transformation savings rebuild free cash flow. General Mills fits retirees who prize a 127-year payment record and a defensive business at 12 times forward earnings, accepting a flat dividend while earnings reset. Best Buy belongs with dividend-growth investors, offering the smallest yield of the three alongside the widest coverage and the most recent raise.

Contact [email protected] for any questions or corrections.

Best Buy Co., Inc. (NYSE:BBY – Get Free Report) EVP Kathleen Scarlett sold 116,062 shares of the company’s stock in a transaction dated Wednesday, September 23rd. The stock was sold at an average price of $92.15, for a total transaction of $10,695,113.30. Following the transaction, the executive vice president owned 116,173 shares of the company’s stock, valued at $10,705,341.95. This represents a 49.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link.

Best Buy Trading Down 0.5% Shares of NYSE:BBY opened at $90.54 on Friday. The company has a quick ratio of 0.41, a current ratio of 1.12 and a debt-to-equity ratio of 0.36. The company’s 50-day moving average price is $87.41 and its 200 day moving average price is $74.84. The company has a market cap of $18.99 billion, a PE ratio of 15.06, a P/E/G ratio of 2.27 and a beta of 1.28. Best Buy Co., Inc. has a fifty-two week low of $55.10 and a fifty-two week high of $96.53.

Best Buy (NYSE:BBY – Get Free Report) last posted its earnings results on Thursday, August 27th. The technology retailer reported $1.47 EPS for the quarter, topping the consensus estimate of $1.39 by $0.08. The firm had revenue of $9.78 billion during the quarter, compared to analysts’ expectations of $9.59 billion. Best Buy had a net margin of 3.01% and a return on equity of 48.14%. Best Buy’s quarterly revenue was up 3.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.28 EPS. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. Sell-side analysts anticipate that Best Buy Co., Inc. will post 6.82 earnings per share for the current year.

Best Buy Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be paid a dividend of $0.96 per share. The ex-dividend date of this dividend is Thursday, September 17th. This represents a $3.84 annualized dividend and a yield of 4.2%. Best Buy’s payout ratio is presently 63.89%. Institutional Inflows and Outflows Hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of Best Buy in the second quarter valued at about $1,932,812,000. Bank of New York Mellon Corp bought a new stake in Best Buy during the 2nd quarter worth about $174,893,000. Norges Bank acquired a new stake in Best Buy in the 4th quarter valued at about $174,685,000. Hsbc Holdings PLC increased its position in Best Buy by 104.1% in the 4th quarter. Hsbc Holdings PLC now owns 2,020,539 shares of the technology retailer’s stock valued at $135,685,000 after acquiring an additional 1,030,544 shares in the last quarter. Finally, Deutsche Bank AG bought a new position in shares of Best Buy in the second quarter worth about $116,003,000. Institutional investors and hedge funds own 80.96% of the company’s stock.

Analyst Ratings Changes A number of research analysts have recently commented on the company. DA Davidson raised Best Buy from a “hold” rating to a “strong-buy” rating in a report on Thursday. Wall Street Zen upgraded shares of Best Buy from a “hold” rating to a “buy” rating in a research report on Saturday, August 29th. Jefferies Financial Group cut shares of Best Buy from a “buy” rating to a “hold” rating and lowered their target price for the company from $89.00 to $85.00 in a research note on Wednesday, August 5th. Morgan Stanley boosted their price target on shares of Best Buy from $80.00 to $90.00 and gave the stock an “equal weight” rating in a research report on Friday, August 28th. Finally, KeyCorp reaffirmed a “sector weight” rating on shares of Best Buy in a research note on Monday, June 22nd. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $85.40.

Read Our Latest Analysis on Best Buy

About Best Buy (Get Free Report)

Best Buy Co, Inc is a specialty retailer of technology products and services operating under the Best Buy brand. The company sells consumer electronics, computers, mobile phones, appliances, entertainment products, smart-home equipment, and related accessories through its retail stores, websites, and other sales channels.

Best Buy also provides technology support, installation, repair, and consultation services through Geek Squad. Its offerings include assistance with device setup, home theater installation, computer and appliance support, and technology solutions for consumers and small businesses.

Further Reading Five stocks we like better than Best Buy Costco Ends Its Fiscal Year on a High Note, Eyes Big Expansion Cracker Barrel Stock Is Rallying Again, But the Turnaround Still Has a Traffic Problem Oracle’s Force Majeure Notice Exposes a Bigger Problem for the AI Build-Out Oil May Be Stronger Than It Looks—And Diamondback Is on Sale

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Best Buy Co., Inc. (NYSE:BBY – Get Free Report) shares hit a new 52-week high during trading on Wednesday. The stock traded as high as $96.53 and last traded at $95.8650, with a volume of 120880 shares changing hands. The stock had previously closed at $94.82.

Best Buy News Summary Here are the key news stories impacting Best Buy this week:

Positive Sentiment: Amazon Fire TV partnership expands advertising opportunity: Best Buy and Amazon expanded their multi-year Fire TV agreement to make Best Buy Ads inventory available across Insignia televisions beginning around February 2027. The deal could turn one-time electronics purchases into recurring advertising revenue and strengthen Best Buy’s retail-media strategy. Best Buy Ads generated approximately $900 million in fiscal 2026 revenue and is expected to approach a $1 billion annual run rate, potentially supporting higher margins and earnings over time. Best Buy and Amazon Expand Fire TV Partnership Positive Sentiment: Core operating performance remains resilient: Best Buy’s latest quarterly results exceeded expectations, including $1.47 in EPS versus the $1.39 consensus estimate, while revenue reached $9.78 billion. Comparable sales also reportedly outpaced forecasts, supporting management’s fiscal 2027 outlook and providing a stable base for the advertising business to grow. Neutral Sentiment: Leadership transition reinforces the strategic pivot: Jason Bonfig is scheduled to become CEO on November 1, replacing Corie Barry. His background in retail media and store-format initiatives signals continued emphasis on advertising monetization and improving the efficiency of Best Buy’s physical footprint, although execution risks remain. Negative Sentiment: Executive share sale creates a sentiment overhang: EVP Kathleen Scarlett sold 116,062 shares for approximately $10.7 million, reducing her direct ownership by nearly half. The transaction follows other reported insider selling and may concern investors because the sales occurred near the stock’s 52-week high. SEC insider transaction filing Negative Sentiment: Analyst caution and hardware pressures remain risks: The consensus rating is reportedly Hold, with an average price target below recent trading levels. Rising memory-chip costs could also lift computer prices and weaken unit demand, limiting growth in Best Buy’s traditional low-margin retail business. Wall Street Analyst Weigh In BBY has been the topic of a number of research analyst reports. UBS Group reissued a “neutral” rating and issued a $90.00 price target (up from $86.00) on shares of Best Buy in a research note on Friday, August 28th. Wells Fargo & Company upped their price objective on shares of Best Buy from $65.00 to $85.00 and gave the stock an “equal weight” rating in a research report on Tuesday, August 11th. Guggenheim lifted their target price on shares of Best Buy from $90.00 to $95.00 and gave the company a “buy” rating in a research report on Friday, August 28th. Truist Financial set a $100.00 target price on shares of Best Buy in a research report on Thursday, August 27th. Finally, Barclays upped their price target on shares of Best Buy from $77.00 to $85.00 and gave the stock a “buy” rating in a research report on Friday, August 28th. Six analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Best Buy has an average rating of “Hold” and an average target price of $85.40.

Check Out Our Latest Stock Analysis on BBY Best Buy Trading Up 0.3% The company has a current ratio of 1.12, a quick ratio of 0.41 and a debt-to-equity ratio of 0.36. The firm has a market capitalization of $19.10 billion, a PE ratio of 15.15, a PEG ratio of 2.37 and a beta of 1.28. The business has a fifty day moving average price of $87.31 and a two-hundred day moving average price of $74.73.

Best Buy (NYSE:BBY – Get Free Report) last released its quarterly earnings results on Thursday, August 27th. The technology retailer reported $1.47 EPS for the quarter, topping analysts’ consensus estimates of $1.39 by $0.08. Best Buy had a return on equity of 48.14% and a net margin of 3.01%.The company had revenue of $9.78 billion for the quarter, compared to analysts’ expectations of $9.59 billion. During the same period in the prior year, the firm earned $1.28 earnings per share. The firm’s revenue was up 3.6% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. Analysts expect that Best Buy Co., Inc. will post 6.82 EPS for the current fiscal year.

Best Buy Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be paid a dividend of $0.96 per share. The ex-dividend date is Thursday, September 17th. This represents a $3.84 dividend on an annualized basis and a yield of 4.2%. Best Buy’s dividend payout ratio is 63.89%.

Insider Activity In other Best Buy news, Chairman Richard M. Schulze sold 300,000 shares of the stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $92.51, for a total transaction of $27,753,000.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Kathleen Scarlett sold 116,062 shares of the firm’s stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $92.15, for a total transaction of $10,695,113.30. Following the completion of the transaction, the executive vice president directly owned 116,173 shares of the company’s stock, valued at $10,705,341.95. This represents a 49.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Best Buy A number of large investors have recently modified their holdings of the stock. Tema ETFs LLC increased its stake in shares of Best Buy by 6.5% in the 2nd quarter. Tema ETFs LLC now owns 2,365 shares of the technology retailer’s stock valued at $179,000 after acquiring an additional 145 shares during the last quarter. Krane Funds Advisors LLC grew its holdings in Best Buy by 3.0% during the fourth quarter. Krane Funds Advisors LLC now owns 5,163 shares of the technology retailer’s stock valued at $346,000 after purchasing an additional 151 shares during the period. B. Metzler seel. Sohn & Co. AG grew its holdings in Best Buy by 1.0% during the second quarter. B. Metzler seel. Sohn & Co. AG now owns 14,613 shares of the technology retailer’s stock valued at $1,109,000 after purchasing an additional 151 shares during the period. Center for Financial Planning Inc. increased its stake in Best Buy by 4.9% in the first quarter. Center for Financial Planning Inc. now owns 4,319 shares of the technology retailer’s stock valued at $277,000 after purchasing an additional 200 shares in the last quarter. Finally, Avory & Company LLC raised its holdings in Best Buy by 6.4% in the fourth quarter. Avory & Company LLC now owns 3,479 shares of the technology retailer’s stock worth $233,000 after purchasing an additional 210 shares during the period. Hedge funds and other institutional investors own 80.96% of the company’s stock.

About Best Buy (Get Free Report)

Best Buy Co, Inc is a specialty retailer of technology products and services operating under the Best Buy brand. The company sells consumer electronics, computers, mobile phones, appliances, entertainment products, smart-home equipment, and related accessories through its retail stores, websites, and other sales channels.

Best Buy also provides technology support, installation, repair, and consultation services through Geek Squad. Its offerings include assistance with device setup, home theater installation, computer and appliance support, and technology solutions for consumers and small businesses.

Further Reading Five stocks we like better than Best Buy Hims & Hers Slides Nearly 7% as Legal Pressure Adds to Its Growing List of Risks Paychex Plunges, Providing the Entry Investors Have Been Waiting For The Case for Buying High-Yield General Mills Just Strengthened SanDisk’s $1,800 Breakout Turns Memory Hardware Into a Profit Story Receive News & Ratings for Best Buy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Best Buy and related companies with MarketBeat.com's FREE daily email newsletter.

Best Buy and Amazon announced an expanded multiyear Fire TV partnership that will continue bringing the Fire TV experience to Insignia TVs and create more connected TV (CTV) advertising opportunities through Best Buy Ads, powered by Amazon Ads technology. Beginning February 2027, Best Buy Ads will use Amazon Ads’ programmatic technology, including AI-powered tools, to help brands plan, activate, optimize and measure advertising campaigns.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260923606515/en/

Best Buy and Amazon Expand Fire TV Partnership, Opening Fire TV Ad Inventory to Best Buy Ads

Building on a relationship that has brought televisions with Fire TV to tens of millions of homes since 2018, the expanded agreement combines Amazon’s streaming expertise with Best Buy’s leadership in home theater. As part of the partnership, Fire TV will continue to be the exclusive TV software experience on all Insignia TVs produced by Best Buy. Insignia TVs, ranging in size from 24- to 85-inch models, feature both the latest Fire TV user interface launched earlier this year, and Alexa+ now integrated across the majority of models. Best Buy will continue to be the exclusive retailer for these devices in store and on Amazon.com, sold by Best Buy.

Best Buy Ads will also now offer brands access to Fire TV advertising inventory on all new and existing Insignia TVs. The partnership provides brands and partners a new way to extend their campaigns to better reach relevant audiences through Fire TV, one of the most widely used streaming experiences.

“No one knows TVs — or the customers who buy them — better than Best Buy,” said Lisa Valentino, chief ads and media officer at Best Buy. “By combining Amazon’s extraordinary Fire TV experience with our Insignia TVs, we can both put a great product in more customers’ homes and create new premium opportunities for brands to reach engaged viewers. It’s a combination of expertise, scale and advertising value that only Best Buy and Amazon can deliver.”

“By extending our relationship into advertising, Best Buy Ads and Amazon Ads will help brands reach relevant audiences with video and display Fire TV ads on the tens of millions of televisions we’ve together delivered to customers' homes,” said Charlotte Maines, vice president of devices, content, and advertising at Amazon. “Brands will also have access to insights on how their campaigns perform on Fire TV to measure the business outcomes they care about most.”

Best Buy and Amazon first entered into a partnership in 2018, when the companies teamed up to introduce Insignia and Toshiba smart TVs with Fire TV built in. Since the launch of the first TVs, Best Buy and Amazon have introduced more than 100 TV models that have earned hundreds of thousands of 4-star ratings from customers. These TVs are available through the Best Buy App, BestBuy.com, in stores and on Amazon.com, sold by Best Buy.

About Best Buy

Best Buy (NYSE: BBY) is the world’s largest specialty consumer electronics retailer. Our purpose is to enrich lives through technology, which we do by providing our customers a unique mix of advice, products and services in our stores, online, and in homes. Our expert associates advise customers on our curated assortment of the latest, name-brand technology, while our highly trained services teams help with designs, consultations, delivery, installation, tech support and repair. We are a leader in corporate responsibility and sustainability issues, including through the Best Buy Foundation’s nationwide Best Buy Teen Tech Center® network and the significant role we play in the circular economy through repair, trade-in and recycling programs. We generated more than $41.6 billion of revenue in fiscal 2026, operate more than 1,000 retail stores in North America, and have more than 80,000 employees. For more information, visit corporate.bestbuy.com and investors.bestbuy.com.

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Copper demand is being pulled higher by AI infrastructure, grids, electrification, and manufacturing. Freeport-McMoRan (FCX +3.04%), Southern Copper (SCCO +4.08%), and BHP (BHP +2.02%) offer three very different ways to participate. The key question is whether operating leverage, low-cost production, or diversification provides the strongest combination of growth, risk, and valuation.

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Key Takeaways Best Buy's fiscal Q2 revenues increased 3.6% y/y to $9.8 billion, with enterprise comparable sales up 4.1%.Domestic online revenues rose 5.1% to $3 billion, representing 33.1% of Best Buy's domestic revenues.Best Buy lifted its Marketplace GMV forecast to $1.3 billion as quarterly GMV reached about $300 million. Best Buy Co., Inc. (BBY - Free Report) is advancing its technology-centered retail model through artificial intelligence (AI), experiential stores and vendor collaboration. Its strategy links digital convenience with associate expertise and differentiated demonstrations. Ask Blue, ChatGPT commerce integration and Meta Labs are designed to improve product discovery and reinforce its omnichannel position.

These efforts are supported by strong performance. Second-quarter fiscal 2027 revenues increased 3.6% year over year to $9.8 billion, while enterprise comparable sales rose 4.1%. Computing led category growth, with the Best Buy Business team’s sales increasing 21% from the prior-year period.

Product innovation was a demand catalyst. Computing recorded its tenth consecutive quarter of positive comparable sales, supported by replacement needs and innovation. Sales from emerging categories, including artificial intelligence glasses, health rings and trading cards, more than doubled. Home theater delivered its strongest sales growth since the second quarter of fiscal 2022.

Best Buy is extending this momentum across physical and digital channels. The company is more than halfway through implementing 50 Meta Labs, which showcase AI glasses and virtual-reality solutions. Domestic online revenues grew 5.1% on a comparable basis to $3 billion and represented 33.1% of domestic revenues. Ask Blue offers comparisons, compatibility guidance and support.

Ads and Marketplace provide a growth avenue. Domestic Marketplace gross merchandise value reached approximately $300 million in the quarter, prompting management to raise its full-year forecast to $1.3 billion. Best Buy Ads collections are on track to grow 10% from last year’s $900 million level. Industrywide memory-cost increases, higher computing prices and high-single-digit unit declines remain concerns, but the AI ecosystem and digital reach support Best Buy’s growth strategy.

BBY’s Price Performance, Valuation & EstimatesOver the past three months, Best Buy’s stock has risen 26.5% compared with the industry’s 23.7% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, BBY trades at a trailing price-to-sales ratio of 0.48, slightly above the industry’s average of 0.46. It has a Value Score of A. 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Best Buy’s current and next financial years’ earnings implies year-over-year growth of 5.6% and 6.8%, respectively. Earnings estimates for fiscal 2027 and 2028 have been revised upward by 22 cents and 17 cents, respectively, over the past 30 days.

Image Source: Zacks Investment Research

BBY’s Zacks Rank & Key PicksBest Buy currently carries a Zacks Rank #3 (Hold).

Five Below, Inc. (FIVE - Free Report) is a Pennsylvania-based specialty value retailer offering trend-right merchandise priced mostly at $5 and below, with a select range priced above $5. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Five Below’s current fiscal-year earnings and sales suggests growth of 57.6% and 20.1%, respectively, from the year-ago actuals. FIVE delivered a trailing four-quarter average earnings surprise of 68.3%.

Target Corporation (TGT - Free Report) offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Target's current fiscal-year earnings and sales suggests growth of 37.8% and 4.8%, respectively, from the year-ago actuals. TGT delivered a trailing four-quarter average earnings surprise of 10.5%.

Ross Stores Inc. (ROST - Free Report) operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company also holds a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales indicates growth of 32.7% and 12.4%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 11.2%.

MINNEAPOLIS--(BUSINESS WIRE)--Even before the pumpkins are carved and the turkey is served, Best Buy is giving shoppers a first look at what's ahead this holiday season — from the latest technology and top gifts to new ways to find inspiration, save big and get help from the experts. With more to discover in stores and online, Best Buy is bringing customers more opportunities to explore the season's hottest tech and find gifts for everyone."Technology is always at the top of holiday gift lists,.

Key Takeaways Best Buy's Q2 adjusted EPS rose 15% to $1.47 as revenues climbed 3.6% and comps advanced 4.1%.Best Buy raised fiscal 2027 revenue guidance to $42.3-$42.8B and comparable-sales growth to 1.9%-3%.Computing, mobile, TVs & newer categories broaden growth, while memory inflation and tougher comps pose risks. Shares of Best Buy Co., Inc. (BBY - Free Report) have gained 17.9% in the past three months, raising the bar for further upside. The advance now has better operating support, with earnings, revenues and comparable sales improving in the latest quarter. Broader category growth and higher fiscal 2027 guidance strengthen the case for sustained momentum. Memory-cost inflation, tougher computing comparisons and a valuation above recent norms keep the investment picture balanced.

BBY's Three-Month Rally Meets Stronger FundamentalsSecond-quarter adjusted earnings rose 15% to $1.47 per share and beat the Zacks Consensus Estimate of $1.37. Revenues increased 3.6% to $9.78 billion and topped the consensus mark of $9.56 billion, while enterprise comparable sales advanced 4.1%.

Best Buy raised fiscal 2027 revenue guidance to $42.3-$42.8 billion and adjusted earnings guidance to $6.70-$6.90 per share. Comparable sales are now expected to increase 1.9-3%, up from the prior range of a 1% decline to 1% growth.

Image Source: Zacks Investment Research

Best Buy's Q2 Beat Adds Weight to the MomentumDomestic comparable sales rose 4.5%, while domestic online comparable sales increased 5.1%. The domestic gross profit rate expanded 60 basis points to 24%, helped by Marketplace, Best Buy Ads and about $34 million of tariff refunds, partly offset by lower product margin rates.

Online revenues represented 33.1% of domestic revenues, up from 32.8% a year earlier. That mix reinforces Best Buy's omnichannel traction as Marketplace and Best Buy Ads scale alongside retail operations.

BBY's Growth Mix Is Broadening Beyond ComputingComputing delivered its 10th consecutive quarter of positive comparable sales growth, while mobile phones posted a sixth straight quarter of growth. Home theater also strengthened, with domestic TV sales rising more than 10% year over year.

Combined sales of AI glasses, trading cards and health rings more than doubled from a year earlier and contributed about one percentage point to comparable sales growth. Best Buy Business sales also increased 21%, adding another growth source.

Best Buy Faces Memory Inflation and Tougher CompsComputing average selling prices increased in the mid-teens as unit volumes fell in the high single digits. Higher memory costs are flowing into the assortment, creating elasticity risk even as Best Buy uses promotions, financing, trade-ins and earlier inventory purchases to preserve key price points.

Management expects computing growth to slow in the second half as comparisons get tougher. Traditional gaming also declined as Best Buy lapped the prior-year Switch 2 launch, underscoring the category's exposure to uneven product cycles.

BBY's Valuation Leaves Less Room for DisappointmentBBY trades at 12.5X forward 12-month consensus EPS estimate, above its five-year median of 11.5X and slightly above the Zacks sub-industry's 12.3X. That premium leaves less valuation cushion if second-half sales or margin progress falls short.

Target Corporation (TGT - Free Report) , one of BBY's retail peers, trades at 14.9X forward earnings. Walmart Inc. (WMT - Free Report) , another peer, trades at 36.8X. Those comparisons place BBY below both peers on this measure, even as its own multiple sits above its five-year median.

BBY's Hold Signal Meets Strong Style ScoresThe bottom line is that BBY's rally has broader fundamental support, but the recent move already reflects some of that progress. Memory inflation, tougher comparisons and a higher-than-median valuation argue for a measured view of additional upside.

The stock currently carries a Zacks Rank #3 (Hold). BBY also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those scores indicate favorable characteristics across multiple investing styles, but they complement rather than override the Zacks Rank, supporting a balanced near-term stance. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Key Takeaways Best Buy raised FY27 revenue guidance to $42.3-$42.8B and adjusted EPS guidance to $6.70-$6.90.BBY expects gross profit rate to rise 30-40 basis points, led by Ads and Marketplace growth.Best Buy sees computing growth slowing as memory costs rise and tougher comparisons pressure demand. Best Buy Co., Inc. (BBY - Free Report) raised its fiscal 2027 outlook after a better-than-expected second quarter, shifting attention to whether its improving profit model can hold through the second half. Stronger sales trends are now being reinforced by newer earnings streams.

Marketplace and Best Buy Ads are contributing to gross-margin expansion, while core categories remain supportive. Memory inflation, tougher computing comparisons and higher operating investments still limit how much of that benefit may reach the bottom line.

BBY's Guidance Raise Resets FY27 ExpectationsBest Buy lifted fiscal 2027 revenue guidance to $42.3-$42.8 billion from $41.2-$42.1 billion. Adjusted earnings guidance increased to $6.70-$6.90 per share from $6.30-$6.60.

The company also raised its adjusted operating income rate forecast to 4.4-4.5% from 4.3-4.4%. Comparable sales are now expected to increase 1.9-3%, versus the prior range of a 1% decline to 1% growth.

Image Source: Zacks Investment Research

Best Buy's Margin Story Leans on New Profit StreamsDomestic gross margin expanded 60 basis points to 24% in the second quarter. The improvement reflected Marketplace, Best Buy Ads and about $34 million of tariff refunds, partly offset by lower product margin rates.

Management expects the fiscal 2027 gross profit rate to improve about 30-40 basis points, led by Ads and Marketplace. The outlook assumes similar tariff refunds in the third quarter.

BBY's Marketplace and Ads Businesses Are ScalingDomestic Marketplace gross merchandise value reached about $300 million in the second quarter. Best Buy raised its full-year Marketplace expectation to $1.3 billion after stronger-than-anticipated performance.

Best Buy Ads is expected to grow 10% in fiscal 2027 after roughly $900 million in collections last year. Walmart Inc. (WMT - Free Report) reported 38% global advertising growth and more than 50% marketplace net sales growth in its latest quarter. Target Corporation (TGT - Free Report) said non-merchandise sales rose more than 20%, reflecting strength in Roundel, Target Circle 360 and Target+.

Best Buy's Core Categories Support the Higher OutlookComputing, home theater and emerging categories were the largest weighted contributors to domestic comparable sales growth. Computing recorded its 10th consecutive quarter of positive comparable sales growth, while domestic TV sales rose more than 10%.

Management expects phones, TVs and emerging categories to grow in the second half. Major appliances also returned to slight sales growth, although the recovery still depends on pricing, availability, delivery speed and installation.

BBY Still Has Cost and Comparison RisksIndustry-wide memory cost increases are raising computing prices. Computing average selling prices rose in the mid-teens in the second quarter while unit volumes fell in the high single digits, showing demand sensitivity to higher price points.

Computing growth is expected to slow as Best Buy laps two years of gains and a particularly strong prior-year third quarter. Annual adjusted SG&A is planned to increase about 20 basis points, which could absorb part of the gross-margin benefit.

BBY's Hold Signal Tempers the Upbeat OutlookThe bottom line is that Best Buy has raised the earnings bar as new profit streams scale and core category trends improve. The second-half test is whether Ads and Marketplace can keep supporting profitability while computing and operating costs become less favorable.

BBY currently carries a Zacks Rank #3 (Hold). It also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those favorable Style Scores reflect attractive characteristics across several investing styles, but they complement the Zacks Rank. With a Hold rank, the combined signal supports a measured near-term view. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BBY weekly chart shows signs of a bullish reversal

Next Support Test Could Define Breakout However, a short-term pullback has followed, and the breakout requires additional confirmation to increase the potential for success. The magnitude of the pullback and time to recovery will be key signals. Since the 50-day moving average was confirmed as dynamic support during the August pullback, it may mark support again. Currently, it is near $84.71 and rising and will soon converge with the October lower swing high, adding to the potential for that area to see support.

$91.27 Holds Key to Further Gains A decisive advance above the recent high of $91.27 would signal a continuation of the May rally and further confirm the bullish reversal signal in July and the recovery of the long-term downtrend line. There is also a double bottom pattern that signaled a breakout during the May rally and it would also confirm on new highs.

Jupiter Topco LLC bought a new position in shares of Best Buy Co., Inc. (NYSE:BBY – Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 27,406 shares of the technology retailer’s stock, valued at approximately $2,079,000.

Other hedge funds have also added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Best Buy during the 2nd quarter worth approximately $1,932,812,000. AQR Capital Management LLC grew its position in shares of Best Buy by 30.9% during the 4th quarter. AQR Capital Management LLC now owns 9,158,839 shares of the technology retailer’s stock worth $613,001,000 after buying an additional 2,160,968 shares during the period. Charles Schwab Investment Management Inc. increased its stake in shares of Best Buy by 2.2% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 7,452,642 shares of the technology retailer’s stock valued at $498,805,000 after acquiring an additional 160,713 shares in the last quarter. Invesco Ltd. increased its stake in shares of Best Buy by 6.1% in the 4th quarter. Invesco Ltd. now owns 4,732,080 shares of the technology retailer’s stock valued at $316,718,000 after acquiring an additional 271,988 shares in the last quarter. Finally, Morgan Stanley lifted its position in shares of Best Buy by 19.1% during the 4th quarter. Morgan Stanley now owns 3,778,294 shares of the technology retailer’s stock valued at $252,881,000 after acquiring an additional 605,911 shares during the period. 80.96% of the stock is currently owned by institutional investors.

Insiders Place Their Bets In related news, Chairman Richard Schulze sold 224,705 shares of the firm’s stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $78.10, for a total value of $17,549,460.50. Following the transaction, the chairman owned 10,430,936 shares of the company’s stock, valued at approximately $814,656,101.60. This trade represents a 2.11% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last quarter, insiders have sold 500,000 shares of company stock valued at $39,065,226. 0.50% of the stock is currently owned by company insiders.

Best Buy Stock Performance NYSE BBY opened at $87.24 on Friday. The company has a market cap of $18.39 billion, a P/E ratio of 14.52, a PEG ratio of 2.17 and a beta of 1.28. The company has a fifty day simple moving average of $83.79 and a 200 day simple moving average of $71.87. The company has a current ratio of 1.12, a quick ratio of 0.41 and a debt-to-equity ratio of 0.36. Best Buy Co., Inc. has a 12-month low of $55.10 and a 12-month high of $91.26. Best Buy (NYSE:BBY – Get Free Report) last released its quarterly earnings data on Thursday, August 27th. The technology retailer reported $1.47 earnings per share for the quarter, topping the consensus estimate of $1.39 by $0.08. Best Buy had a net margin of 3.01% and a return on equity of 48.14%. The firm had revenue of $9.78 billion for the quarter, compared to the consensus estimate of $9.59 billion. During the same quarter in the prior year, the company posted $1.28 earnings per share. The business’s revenue was up 3.6% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. Sell-side analysts predict that Best Buy Co., Inc. will post 6.81 earnings per share for the current fiscal year.

Best Buy Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Thursday, September 17th will be issued a $0.96 dividend. This represents a $3.84 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date is Thursday, September 17th. Best Buy’s dividend payout ratio is currently 63.89%.

Wall Street Analysts Forecast Growth Several research analysts recently issued reports on the stock. Bank of America initiated coverage on shares of Best Buy in a research note on Monday, August 3rd. They set an “underperform” rating and a $80.00 target price on the stock. Wedbush reiterated a “buy” rating on shares of Best Buy in a report on Monday, August 24th. Wells Fargo & Company increased their price objective on shares of Best Buy from $65.00 to $85.00 and gave the stock an “equal weight” rating in a research report on Tuesday, August 11th. Weiss Ratings upgraded Best Buy from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, July 29th. Finally, Guggenheim boosted their target price on Best Buy from $90.00 to $95.00 and gave the company a “buy” rating in a research report on Friday, August 28th. Seven equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $85.40.

Read Our Latest Stock Analysis on Best Buy

About Best Buy (Free Report)

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.

Further Reading Five stocks we like better than Best Buy The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story NVIDIA’s Hugging Face Deal Raises a Bigger Question About Its AI Moat Now Dropping the Dough: Yum! Brands Strategically Trims the Fat These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern Want to see what other hedge funds are holding BBY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Best Buy Co., Inc. (NYSE:BBY – Free Report).

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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MINNEAPOLIS--(BUSINESS WIRE)--Best Buy Co., Inc. (NYSE: BBY) today announced results for the 13-week second quarter ended August 1, 2026 (“Q2 FY27”), as compared to the 13-week second quarter ended August 2, 2025 (“Q2 FY26”).   Q2 FY27 Q2 FY26 Revenue ($ in millions)     Enterprise $ 9,779   $ 9,438   Domestic segment $ 9,070   $ 8,698   International segment $ 709   $ 740   Enterprise comparable sales % change1   4.1 %   1.6 % Domestic comparable sales % change1   4.5 %   1.1 % Domestic compar.