Will Best Buy turn the corner?

Today post will break down Best Buy. I will inspect why investors should continue to be optimistic in the company outlook. Here I will also break down some basic indicators drivers that the organisation investors should consider in March. What is Best Buy Target Price Odds to finish over Current Price? Based on normal probability distribution, the odds of Best Buy to move above current price in 30 days from now is about 28.86%. The Best Buy Co probability density function shows the probability of Best Buy Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, the stock has beta coefficient of 1.0775 . This suggests Best Buy Co market returns are sensitive to returns on the market. As the market goes up or down, Best Buy is expected to follow. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. Best Buy is significantly underperforming S&P 500. Best Buy dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.75 per share.
Published over a year ago
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Reviewed by Michael Smolkin

This firm is overvalued at 50.15 per share with modest projections ahead. The firm shows Beta (market volatility) of 1.0775 which signifies that Best Buy returns are very sensitive to returns on the market. as market goes up or down, Best Buy is expected to follow. Even though it is essential to pay attention to Best Buy historical returns, it is always good to be careful when utilizing equity current trending patterns. Macroaxis philosophy towards foreseeing future performance of any stock is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Best Buy Co exposes twenty-eight different technical indicators which can help you to evaluate its performance. Best Buy has expected return of -0.1089%. Please be advised to confirm Best Buy Maximum Drawdown as well as the relationship between Expected Short fall and Rate Of Daily Change to decide if Best Buy past performance will be repeated at some point in the near future. Earning per share calculations of the entity is based on official Zacks consensus of 8 analysts regarding the stock future annual earnings. Given the historical accuracy of 79.77%, the future earnings per share of the company is estimated to be 3.2718 with lowest and highest values of 3.23 and 3.3 respectively. Please note that this consensus of annual earnings estimates for Best Buy is an estimate of EPS before non-recurring items and including employee stock options expenses.
The performance of Best Buy Co in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Best Buy's stock prices. When investing in Best Buy, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Best Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Best Buy carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Best Buy earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Best Buy dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Best one year expected dividend income is about USD2.4 per share.
Dividends Paid is likely to rise to about (761 M) in 2024. Dividend Yield is likely to drop to 0.02 in 2024.
Last ReportedProjected for 2024
Dividends Paid-801 M-761 M
Dividend Yield 0.05  0.02 
Dividend Payout Ratio 0.65  0.20 
Dividend Paid And Capex Coverage Ratio(6.24)(6.55)
Investing in dividend-paying stocks, such as Best Buy Co is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Best Buy must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Best Buy. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Best Buy's Liquidity

Best Buy financial leverage refers to using borrowed capital as a funding source to finance Best Buy Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Best Buy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Best Buy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Best Buy's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Best Buy's total debt and its cash.

What do experts say about Best?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

Breaking down Best Buy Further

The company has Return on Asset of 8.29 % which means that on every $100 spent on asset it made $8.29 of profit. This is considered to be average in the sector. In the same way, it shows return on shareholders equity (ROE) of 30.51 % implying that it generated $30.51 on every 100 dollars invested. Best Buy price decrease over the last few months could raise concerns from investors as the firm closed today at a share price of 58.23 on 754323 in volume. The company directors and management were not very successful in positioning the firm components to exploit market volatility in January. However, diversifying your holdings with Best Buy Co or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.5438. The current volatility is consistent with the ongoing market swings in January 2019 as well as with Best Buy unsystematic, company specific events. Best Buy reports 9.88b gross profit. Best Buy is selling at 59.14. That is 1.15 percent up. Today lowest is 58.23. Best Buy Return on Invested Capital is decreasing over the last 5 years. Also, Best Buy Earnings before Tax is increasing over the last 5 years.
 2012 2014 2015 2018 2019 (projected)
Best Buy Cost of Revenue 31,212,000,000  31,292,000,000  30,337,000,000  27,303,300,000  25,980,864,662 
Best Buy Consolidated Income 523,000,000  1,235,000,000  897,000,000  807,300,000  808,503,759 
On the whole, we believe that at this point Best Buy is overvalued with very small odds of financial distress within the next 2 years. Our primary buy/sell advice on the company is Hold.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Best Buy Co. Please refer to our Terms of Use for any information regarding our disclosure principles.

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