Best Buy Stock Buy Hold or Sell Recommendation

BBY -  USA Stock  

USD 96.45  1.55  1.63%

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Best Buy Company is 'Strong Hold'. Macroaxis provides Best Buy buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Best Buy positions. The advice algorithm takes into account all of Best Buy's available fundamental, technical, and predictive indicators you will find on this site.

Best Buy Advice 

 
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The advice is provided from Best Buy's buy-and-hold perspective. Continue to Best Buy Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Best Buy and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Best Buy Company.

Execute Best Buy Buy or Sell Advice

The Best Buy recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Best Buy Company. Macroaxis does not own or have any residual interests in Best Buy Company or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Best Buy's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Best BuyBuy Best Buy
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Best Buy Company has a Risk Adjusted Performance of 0.0437, Jensen Alpha of 0.0136, Total Risk Alpha of (0.004995), Sortino Ratio of 0.0057 and Treynor Ratio of 0.0494
Macroaxis provides advice on Best Buy to complement and cross-verify current analyst consensus on Best Buy Company. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Best Buy is not overpriced, please confirm all Best Buy fundamentals, including its book value per share, working capital, and the relationship between the cash and equivalents and number of employees . Given that Best Buy has a price to earning of 9.33 X, we suggest you to validate Best Buy Company market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Best Buy Trading Alerts and Improvement Suggestions

Over 81.0% of the company shares are held by institutions such as insurance companies
Latest headline from finance.yahoo.com: Hemington Wealth Management Buys iShares Core SP Total U.S. ... - Yahoo Finance

Best Buy current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Best Buy analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Best Buy analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price129.85
Target Median Price132.00
Target High Price175.00
Recommendation Mean2.60
Number Of Analyst Opinions24
Target Low Price82.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Best Buy Returns Distribution Density

The distribution of Best Buy's historical returns is an attempt to chart the future uncertainty of Best Buy's future price movements. The chart of the probability distribution of Best Buy stock daily returns describes the distribution of returns around its average expected value. We use Best Buy Company price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Best Buy returns is essential to provide solid investment advice for Best Buy stock.
Mean Return0.06Value At Risk-4.26
Potential Upside3.56Standard Deviation2.75
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Best Buy historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Best Buy Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Best Buy or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Best Buy stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Best Buy stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.013617
β
Beta against DOW1.08
σ
Overall volatility
2.76
Ir
Information ratio 0.0061

Best Buy Volatility Alert

Best Buy Company currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.01. However, we advise investors to further question Best Buy Company expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Best Buy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Best Buy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Best Buy Implied Volatility

Best Buy's implied volatility exposes the market's sentiment of Best Buy Company stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Best Buy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Best Buy stock will not fluctuate a lot when Best Buy's options are near their expiration.

Best Buy Fundamentals Vs Peers

Comparing Best Buy's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Best Buy's direct or indirect competition across all of the common fundamentals between Best Buy and the related equities. This way, we can detect undervalued stocks with similar characteristics as Best Buy or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Best Buy's fundamental indicators could also be used in its relative valuation, which is a method of valuing Best Buy by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Best Buy to competition
FundamentalsBest BuyPeer Average
Return On Equity63.22 %(0.31) %
Return On Asset10.16 %(0.14) %
Profit Margin5.05 %(1.27) %
Operating Margin8.05 %(5.51) %
Current Valuation25.81 B16.62 B
Shares Outstanding240.56 M571.82 M
Shares Owned by Insiders10.46 %10.09 %
Shares Owned by Institutions81.04 %39.21 %
Number of Shares Shorted9.91 M4.71 M
Price to Earning9.33 X28.72 X
Price to Book5.50 X9.51 X
Price to Sales0.44 X11.42 X
Revenue52.33 B9.43 B
Gross Profit10.6 B27.38 B
EBITDA4.21 B3.9 B
Net Income2.64 B570.98 M
Cash and Equivalents3.46 B2.7 B
Cash per Share14.40 X5.01 X
Total Debt3.98 B5.32 B
Debt to Equity0.93 %48.70 %
Current Ratio1.13 X2.16 X
Book Value Per Share17.55 X1.93 K
Cash Flow from Operations2.08 B971.22 M
Short Ratio2.38 X4.00 X
Earnings Per Share10.34 X3.12 X
Price to Earnings To Growth1.11 X4.89 X
Number of Employees61.2 K18.84 K
Beta1.59-0.15
Market Capitalization23.2 B19.03 B
Total Asset13.52 B29.47 B
Retained Earnings3.84 B9.33 B
Working Capital2.96 B1.48 B
Current Asset9.89 B9.34 B
   Purchase by J Doyle of 20000 shares of Best Buy [view details]

About Best Buy Buy or Sell Advice

When is the right time to buy or sell Best Buy Company? Buying financial instruments such as Best Buy Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Best Buy investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2014 2020 2022 (projected)
Receivables1.15 B1.06 B1.58 B
Inventories5.17 B5.61 B5.89 B

Use Investing Ideas to Build Portfolios

In addition to having Best Buy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Oil And Gas Thematic Idea Now

Oil And Gas
Oil And Gas Theme
Companies involved in drilling, production, and distribution of oil and gas pipelines. Oil And Gas theme has 20 constituents.
View All  Next Launch Oil And Gas
Continue to Best Buy Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Best Buy information on this page should be used as a complementary analysis to other Best Buy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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Is Best Buy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Best Buy. If investors know Best Buy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Best Buy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Best Buy is measured differently than its book value, which is the value of Best Buy that is recorded on the company's balance sheet. Investors also form their own opinion of Best Buy's value that differs from its market value or its book value, called intrinsic value, which is Best Buy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Best Buy's market value can be influenced by many factors that don't directly affect Best Buy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Best Buy's value and its price as these two are different measures arrived at by different means. Investors typically determine Best Buy value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Best Buy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.