/Best%20Buy%20Co_%20Inc_%20store%20by-%20Michael%20Vi%20via%20iStock.jpg)
With a market cap of $15.4 billion, Best Buy Co., Inc. (BBY) is a leading multinational retailer of consumer electronics, appliances, and technology services, operating in the United States, Canada, and internationally. The company offers a wide range of products and solutions through its physical stores, online platforms, and numerous well-known brands, including Best Buy, Geek Squad, Lively, and Pacific Kitchen & Home.
Shares of the Richfield, Minnesota-based company have lagged behind the broader market over the past 52 weeks. BBY stock has decreased 14.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 18.4%. In addition, shares of the company are down 17.5% on a YTD basis, compared to SPX’s 9.9% increase.
Focusing more closely, Best Buy stock has underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 29.3% return over the past 52 weeks.
Despite posting a better-than-expected Q1 2026 adjusted EPS of $1.15, Best Buy shares tumbled 7.3% on May 29 due to a significant cut in its full-year comparable sales and adjusted EPS guidance to $6.15 - $6.30. Investor sentiment was further dampened by concerns over rising U.S. tariffs, which could increase costs on imported goods, roughly 30% - 35% of Best Buy's inventory, pressuring margins and consumer demand for high-ticket items.
For the fiscal year ending in January 2026, analysts expect BBY’s adjusted EPS to decline 2.4% year-over-year to $6.22. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 22 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, 13 “Holds,” and one “Moderate Sell.”
This configuration is slightly less bullish than three months ago, with nine “Strong Buy” ratings on the stock.
On May 30, DA Davidson lowered its price target on Best Buy to $90 while maintaining a “Buy” rating.
As of writing, the stock is trading below the mean price target of $78.42. The Street-high price target of $95 implies a potential upside of 33.5% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
