Their main competitor would have to be Dollar Tree, and the difference is with Dollar Tree, all of their items are a dollar and under, where as Dollar General has items that many of which are over a dollar. Another competitor to keep in mind is Five Below, which all of their items are five dollars and under.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Best Buy income statement, its balance sheet, and the statement of cash flows. Potential Best Buy investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Best Buy investors may use each financial statement separately, they are all related. The changes in Best Buy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Best Buy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Best Buy
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Best Buy performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Best Buy shares is the value that is considered the true value of the share. If
the intrinsic value of Best is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Best Buy. Please read more on our
fundamental analysis page.
How effective is Best Buy in utilizing its assets?
Best Buy Co reports assets on its Balance Sheet. It represents the amount of Best resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Best Buy aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Computer & Electronics Retail space. To get a better handle on how balance sheet or income statements item affect Best volatility, please check the breakdown of all its
fundamentals.
Are Best Buy Earnings Expected to grow?
The
future earnings power of Best Buy involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Best Buy factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Best Buy
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Best
expected earnings.
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 USD2.42 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.
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.
Best Buy Gross Profit
Best Buy Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Best Buy previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Best Buy Gross Profit growth over the last 10 years. Please check Best Buy's
gross profit and other
fundamental indicators for more details.
Breaking down Best Buy Further
The benefits to these types of companies are when the market begins to slow, they may lose some sales, but due to their price point, many people will continue to shop their and maybe even increase their spending since the prices are lower. Of course there are many items that Dollar General may not carry that you need from other stores, but for quick things such as cards or small gifts, this store executes that area really well.
Taking a look at the stock price using the monthly time frame, we can see that the price is beginning to slow, which could be a result of the slowing retail sector as a whole. It is still creating higher lows but it is making lower highs and this could be a squeeze that results in a push to the downside. With that in mind, look over the fundamentals and see if the company as a whole is sound and this is just normal buying and selling in the market.
There are a few risks to keep in mind while researching, and the first is they are in the retail space. Given the current situation of retail, it would be wise to keep an eye on their competition to see how they are doing and if there are any storms on the way. Secondly, the store does not carry many of the items people may need, forcing them to shop elsewhere. Now this may not be suitable due to price ranges, but maybe they add more common items and use off brand names. Lastly, the competition at this level is crazy and you have to watch for the best value play. There are at least two large competitors, but there could be more at a local level.
The price point at which this company operates allows it to limit the affects of the overall market, but it certainly is no immune. Watch the competition closely and find which one will provide you with the best value and growth potential. If you become stuck, reach out to an investing professional and they will help to point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile 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 Nathan Young do not own shares of Best Buy Co. Please refer to our
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