Recently JP Morgan & Company published a research report for Best Buy Stock. They cut the target to $78 from $85. They maintained a Neutral rating on the company’s stock.
Analysis of the Best Buy Stock:
Best Buy stock forecast for the next 12 months, the average analyst target price for Best Buy is USD 82.10. Based on 17 analysts’ estimates. The typical analyst rating for Best Buy stock is Buy. Best Buy stock analysis by Stock Target Advisor is Neutral. Based on five positive and five negative signals. The stock price of Best Buy was US$70.83 at the most recent close. The share price of Best Buy has moved over the course of the last week, month, and year by -4.62%, +11.07%, and -47.97%.
Best Buy reported the company’s adjusted third-quarter earnings. It was $1.38 per share on $10.59 billion in revenue. Analysts anticipated earnings of $1.03 per share on a $10.31 billion in revenue. Analysts had predicted a 12.9% decline in same-store sales, but instead, they dropped 10.4%. Best Buy stated that it anticipates same-store sales to decline 10% in fiscal 2023. In comparison to the previous forecasts of 11%. Investors were anticipating Best Buy to report a solid quarter on Tuesday. This was because:
But, Best Buy did caution that this year’s seasonal promotional push was greater. It was approaching near pre-epidemic levels. The average selling prices will likely continue to decline year over year. Because of the pandemic, there was less supply and more demand. So many shops were able to make bigger profits. Many shops have given up that advantage. They are now using discounts to boost this year’s sales, which aren’t doing as well.
Since the year’s beginning, Best Buy stock has lost approximately 30% of its value.
Fundamental Analysis for Best Buy Stock
Best Buy Stock Positive Fundamentals
High market capitalization
This organization is among the top quartile and is one of the biggest in its industry. These businesses are more reliable usually.
Superior capital efficiency
In the last four quarters, firm management outperformed its counterparts. Return on invested capital, putting it in the top quartile.
Healthy cash flow
The last four quarters saw positive total cash flow for the organisation.
Positive free cash flow
The last four quarters saw the company generate positive total free cash flow.
High Asset to Gross Profit Ratio
When compared to its rivals, this stock’s Gross Profit to Asset Ratio is in the top quartile. Value investors choose this metric because it exhibits superior long-term returns.
Best Buy Stock Negative Fundamentals
Subpar risk-adjusted returns
In comparison to its rivals, this company’s risk-adjusted return performance is below average. The returns are unpredictable, even if it is outperforming returns. Be careful as you go.
Lower than average dividend returns
In comparison to its competitors, the company’s average income yield has been low. Compared to the past five years analysis. If you are not seeking for work, it is not an issue.
Overpriced in comparison to wages
The stock is trading above the sector median and at a premium to its peers’ price to earnings.
Compared to book value, its overpriced
On a price to book value basis, the stock is selling at a premium to the median of its peer group.
Debt to equity, the company got leveraged and in the bottom half of its sector rivals. Check the news, though, and study the sector and management remarks. This can be high at times since the business is attempting to grow.
Recent Insider Trades
The sale of 890 shares got executed on Best Buy stock by CFO Matthew M. Bilunas on Tuesday, August 23rd. For a total transaction value of $70,390.10. The stock got sold at an average price of $79.09. After the transaction, the chief financial officer owns 59,513 shares in the business, valued at $4,706,883.17. On September 19th, EVP Kathleen Scarlett sold 25,071 shares of Best Buy stock. The shares sold for a total of $1,814,388.27 at an average price of $72.37 per share. The Executive VP now owns 50,101 company shares, valued at approximately $3,625,809.37, after the sale. Insiders have sold 27,423 shares of company stock in the last 90 days for a total value of $1,995,772. 0.44% of the company’s stock held by insiders.
Best Buy stock recently bottomed off the $64 range. It’s currently on a bullish upswing, whereby the stock could test its resistance point at $90.
Conclusion of Analysis
The fundamental analysis for Best Buy stock got rated with a score of 5 out of 10.
Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.