Best Buy Co., Inc.'s (NYSE:BBY) Shares Not Telling The Full Story

Simply Wall St.11-21 21:38

When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") above 19x, you may consider Best Buy Co., Inc. (NYSE:BBY) as an attractive investment with its 14.8x P/...

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(NYSE:BBY) as an attractive investment with its 14.8x P/...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-bby/best-buy/news/best-buy-co-incs-nysebby-shares-not-telling-the-full-story\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Best Buy Co., Inc.'s (NYSE:BBY) Shares Not Telling The Full Story</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBest Buy Co., Inc.'s (NYSE:BBY) Shares Not Telling The Full Story\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-21 21:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/retail/nyse-bby/best-buy/news/best-buy-co-incs-nysebby-shares-not-telling-the-full-story><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When close to half the companies in the United States have price-to-earnings ratios (or \"P/E's\") above 19x, you may consider Best Buy Co., Inc. (NYSE:BBY) as an attractive investment with its 14.8x P/...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-bby/best-buy/news/best-buy-co-incs-nysebby-shares-not-telling-the-full-story\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4533","symbol_name":"AQR资本管理(全球第二大对冲基金)","start_time":0,"source_url":"https://simplywall.st/stocks/us/retail/nyse-bby/best-buy/news/best-buy-co-incs-nysebby-shares-not-telling-the-full-story","article_id":"2485544933","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/255397-main-header/1585186829523"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485544933","pubTimestamp":1732196282,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"When close to half the companies in the United States have price-to-earnings ratios (or \"P/E's\") above 19x, you may...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4533":"AQR资本管理(全球第二大对冲基金)","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","BK4588":"碎股","BK4076":"电脑与电子产品零售","LU0868494708.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) INC","BK4567":"ESG概念","BK4585":"ETF&股票定投概念","NYSE":"纽交所","BBY":"百思买","LU0942090050.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD)  INC"},"translate_title":"百思买公司（纽约证券交易所股票代码：BBY）的股票并没有说明全部情况","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BBY":1,"NYSE":1},"content_text":"When close to half the companies in the United States have price-to-earnings ratios (or \"P/E's\") above 19x, you may consider Best Buy Co., Inc. (NYSE:BBY) as an attractive investment with its 14.8x P/E ratio.  Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/E.     While the market has experienced earnings growth lately, Best Buy's earnings have gone into reverse gear, which is not great.   It seems that many are expecting the dour earnings performance to persist, which has repressed the P/E.  If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.     See our latest analysis for Best Buy NYSE:BBY Price to Earnings Ratio vs Industry November 21st 2024 Want the full picture on analyst estimates for the company? Then our free report on Best Buy will help you uncover what's on the horizon.   Does Growth Match The Low P/E?   Best Buy's P/E ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the market.   Taking a look back first, we see that there was hardly any earnings per share growth to speak of for the company over the past year.   The lack of growth did nothing to help the company's aggregate three-year performance, which is an unsavory 41% drop in EPS.  So unfortunately, we have to acknowledge that the company has not done a great job of growing earnings over that time.     Looking ahead now, EPS is anticipated to climb by 11% per year during the coming three years according to the analysts following the company.  Meanwhile, the rest of the market is forecast to expand by 11% per year, which is not materially different.  In light of this, it's peculiar that Best Buy's P/E sits below the majority of other companies.  It may be that most investors are not convinced the company can achieve future growth expectations.    What We Can Learn From Best Buy's P/E?  While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.  Our examination of Best Buy's analyst forecasts revealed that its market-matching earnings outlook isn't contributing to its P/E as much as we would have predicted.  When we see an average earnings outlook with market-like growth, we assume potential risks are what might be placing pressure on the P/E ratio.  At least the risk of a price drop looks to be subdued, but investors seem to think future earnings could see some volatility.      Many other vital risk factors can be found on the company's balance sheet.  You can assess many of the main risks through our free balance sheet analysis for Best Buy with six simple checks.   If you're unsure about the strength of Best Buy's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed. Valuation is complex, but we're here to simplify it.Discover if Best Buy might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2485544933"}