Best Buy Co., Inc. (BBY), headquartered in Richfield, Minnesota, retails consumer electronics, home office products, entertainment software, appliances, and related services through its retail stores and website. Valued at $16.4 billion by market cap, the company also retails pre-recorded home entertainment products through retail stores.
Shares of this tech retail giant have underperformed the broader market considerably over the past year. BBY has declined 13% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14.1%. In 2025, BBY’s stock fell 9.5%, compared to the SPX’s 16.4% rise on a YTD basis.
Narrowing the focus, BBY has also lagged behind the SPDR S&P Retail ETF (XRT). The exchange-traded fund has gained about 1% over the past year. Moreover, the ETF’s 1.8% returns on a YTD basis outshine the stock’s losses over the same time frame.
Best Buy's underperformance is due to online competition and normalized post-pandemic gadget spending.
On Aug. 28, BBY shares closed down by 3.7% after reporting its Q2 results. Its adjusted EPS of $1.28 exceeded Wall Street expectations of $1.22. The company’s revenue was $9.4 billion, topping Wall Street forecasts of $9.2 billion. BBY expects full-year adjusted EPS in the range of $6.15 to $6.30, and expects revenue in the range of $41.1 billion to $41.9 billion.
For the current fiscal year, ending in January 2026, analysts expect BBY’s EPS to decline 1.9% to $6.25 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 24 analysts covering BBY stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, 15 “Holds,” and one “Moderate Sell.”
The configuration has been relatively stable over the past three months.
On Nov. 7, Truist Financial Corporation (TFC) kept a “Hold” rating on BBY and raised the price target to $79, implying a potential upside of 1.7% from current levels.
The mean price target of $80.79 represents a 4% premium to BBY’s current price levels. The Street-high price target of $95 suggests an upside potential of 22.3%.
On the date of publication, Neha Panjwani 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.
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