UBS stated that $Best Buy(BBY)$ upcoming earnings are likely to highlight its increasingly robust business model. The electronics retailer is benefiting from a new wave of technology products and internal cost controls, laying the foundation for a solid holiday season and a constructive outlook through 2026.
UBS reiterated its "Buy" rating and raised its price target from $90 to $93.
With a market cap of $17.5 billion, $Best Buy(BBY)$ is a leading American consumer electronics retailer headquartered in Richfield, Minnesota. The company operates more than 1,000 stores across the U.S., Canada, and Mexico, offering a wide range of products, including computers, appliances, mobile devices, entertainment systems, and related services through its Geek Squad brand.
The company is expected to announce its fiscal Q3 2026 earnings results soon. Ahead of this event, analysts expect $Best Buy(BBY)$ to report an adjusted EPS of $1.30, up 3.2% from $1.26 in the year-ago quarter. It has surpassed Wall Street's earnings estimates in three of the last quarters while missing on another occasion.
Best Buy’s share price has lost ground recently, with a 1-month share price return of -7% and a year-to-date decline of around12%. This decline reflects cooling momentum after gains earlier this year. Looking further out, its 3-year total shareholder return remains solidly in positive territory, even as current sentiment appears cautious amid shifting industry dynamics.
Most Popular Narrative: 7% Undervalued
With the consensus narrative estimating Best Buy’s fair value at $81.38 using an 8.8% discount rate, the latest close at $75.72 points to a calculated undervaluation that could catch attention, especially as the margin for upside remains above current analyst price targets.
Ongoing investment in advanced supply chain automation, data-driven fulfillment, and omnichannel capabilities is reducing operating expenses, optimizing inventory, and enabling faster delivery and improved customer satisfaction, which collectively should support
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