Best Buy Co., Inc. (BBY) Offer Superior Growth And Strong Momentum

On the technicals front, Best Buy Co., Inc. (NYSE:BBY) overall has 8% Buy rating. The stock is also flashing a Buy from the Barchart TrendSpotter trading system. Traders hoping to speculate on the BBY’s short-term trajectory should know that short terms indicators for the stock averaged 20% Buy with an average daily trading volume over the past 20 days at 2602210 shares. BBY stock has overall a 0.25% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 3877508 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 3865851 shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $58.08. Below this, the next support is placed in the zone of $57.72. Till the time, the BBY stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.93 on daily chart, which may remain a cause for concern. If the price breaks below $57.72 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $58.95 mark may result into a pull-back move towards $59.46 level.

Best Buy Co., Inc. (BBY) is projected to climb by 20.03 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $90 price as 12-month high target. This represents a whopping 53.98 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $68.5, which represents a return potential of 17.19 percent when compared to the closing price of the stock of $58.45 on Monday, February 11. The lowest price target for the stock is $50 — slightly more than -14.46 percent from BBY’s current share price.

Here’s a rundown of insider trading activity for sense of Best Buy Co., Inc. (NYSE:BBY). The earliest insider trade took place on 10/19/2018. Barry Corie S parted with a total of 6.78 thousand shares of company at average share price of $72.8. The total for the sales was set at $493.8 thousand. After this transaction, the CFO account balance stood at 83.15 thousand shares. The stock lost -19.66 percent since that insider sale. On 10/02/2018, Barry Corie S, CFO, sold 2.98 thousand shares at a price per share of $78.35. This removed 233.64 thousand shares from the insider’s fortune and the stock saw a -25.35 percent retreat in value since the news became public. This transaction left 75.03 thousand shares in the CFO account. On 09/28/2018, SVP, Finance-Shared SVCS & CAO Watson Mathew performed a sale transaction worth $2.6 thousand. This sale at $78.8 each has eliminated 0.03 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -25.77 percent decrease since the transaction was reported. The insider now is left with 18.1 thousand shares remaining in the account. Watson Mathew, who performs the SVP, Finance-Shared SVCS & CAO job, sold 2.13 thousand shares for $165.96 thousand. The disposal occurred on 09/12/2018 was priced at $77.88 per share. The share price plunged -24.9 percent since the reporting date. Watson Mathew now left with a stake of 18.13 thousand BBY stock worth $1.06 million after the insider selling.

BBY shares dropped -0.5 points or -0.85 percent on Monday to $58.45 with a light trade volume of 2.207 million shares. After opening the session at $59.01, the shares went as high as $59.09 and as low as $58.22, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $15.7 billion and now has 268.69 million shares outstanding. Best Buy Co., Inc. (BBY) stock has gained 2.78 percent of market value in 21 trading days.

Analysts at MoffettNathanson upped their rating on shares of Best Buy Co., Inc. (NYSE:BBY) from Sell to Neutral in their opinion released on December 19. BofA/Merrill analysts have downgraded their rating of BBY stock from Neutral to Underperform in a separate flash note to investors on December 17. Analysts at Wedbush issued an upgrade from Underperform to Neutral for the stock, in a research note that dated back to November 21.

BBY stock has a trailing 3-year beta of 0.91, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $4.76 a share in the trailing twelve months. The stock’s value has surged 10.37 percent year to date (YTD) against a decline of -15.03 percent in 12 month’s time. The company’s shares still trade -30.72 percent away from its 1-year high of $84.37 and 22.49 percent up from 52-week low of $47.72. The average consensus rating on the company is 2.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Best Buy Co., Inc. (BBY) are trading at a P/E ratio of 12.4 times earnings reported for the past 12 months. The industry BBY operates in has an average P/E of 24.02. Its P/E ratio went as low as 9.73X and as high as 17.07 over the 5-year span. Further, it is sporting a 0.36 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.77. 23.2 percent is the gross profit margin for Best Buy Co., Inc. and operating margin sits at 4.1 percent. Along with this, the net profit margin is 2.5 percent.

BBY will be declaring its Q4 financial results on February 27. Analysts are forecasting revenue to suffer decline of -4.3 percent to $14.7B in the next fiscal quarter, while earnings are seen soaring by nearly 6.2 percent to $2.57 per share. History has shown that shares in Best Buy Co., Inc. have gone down on 19 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.93 per share, better than the $0.85, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $9.59B, better than the $9.57B analysts expected. Earnings are estimated to increase by 11.6 percent this year, 6.01 percent next year and continue to increase by 16.27 percent annually for the next 5 years.