At $76.77, Best Buy (BBY) a Strong Buy based on the most current relative pricing of its shares and news. The Strong Buy recommendation for Best Buy Inc (NYSE:BBY) resulted from an analytical process that is proprietary which yielded outcomes that were above average in 4 areas: an industry group ranked above average in attractiveness, a ranking in its sector group that is in the top decile, ranking in its industry group that is in the top half, and a quantitative risk/reward calculation that is very attractive; and produced below average conclusions in 2 areas: an economic sector rated below average in attractiveness, and an analytical score that is near average. BBY has recently seen its Portfolio Grader rating upgraded from a Buy to a Strong Buy.
BBY is a constituent of the 5 company Electronics/Appliance Stores GICS industry group, which is part of the 149 company GICS Retail Trade sector. BBY's market value is $22.5 billion which falls in the top 25% of its industry group BBY's current Portfolio Grader score places it 2 among the 5 companies in this industry group.
Currently, Portfolio Grader ranks the Retail Trade sector number 13 among the 20 sectors in its universe putting it in the third quartile of all the GICS sectors. The Electronics/Appliance Stores industry group is ranked 42 among the 129 industry groups within the GICS sectors, placing it near the average in terms of the Proprietary Quantitative Score scoring system.
Best Buy has achieved above-average scores in 4 of the 8 fundamental areas evaluated by Portfolio Grader in the ranking of company stocks.
The company's operational scores provide mixed results with a ranking for operating margin and earnings growth that are below average, while the score for sales growth is above average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions and earnings surprises that are better than average, while the score for earnings momentum is worse than average. BBY's ranking for return on equity is markedly better than its industry group average but its grade for cash flow is below-average. Best Buy's fundamental scores give BBY a place in the top half of the industry group.
Quantitatively, Portfolio Grader uses the Proprietary Quantitative Score to gauge BBY's shares from the aspect of risk/reward. This unique scoring methodology considers the relative value of the company's shares based on the recent $76.77 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Considering this risk/reward calculation, BBY currently scores well above-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.