| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 86 | 15.1x | 17.8x | Top tier | |
Growth | 30 | 1.4% | 7.1% | Bottom tier | |
Quality | 80 | 17.6% | 4.5% | Top tier | |
Safety | 75 | 0.7x | 2.6x | Top tier | |
Capital Return | 69 | 4.19% | 2.12% | Top tier | |
Momentum | 87 | 6.2% | 2.9% | Top tier | |
Sentiment | 37 | 15 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Best Buy Co., Inc. sells technology products and consumer electronics through its stores and digital channels, along with installation and support services, membership programs, and financing. The company also benefits from expanding profit streams, most notably Best Buy Ads and the Marketplace, alongside Best Buy Business, which generates more than $1.1 billion annually and serves sectors such as education, hospitality, healthcare, and corporations. In the second quarter of fiscal 2027, online sales represented 33.1% of domestic segment revenue, reflecting the omnichannel nature of the model.
In the second quarter of fiscal 2027, revenue rose 3.6% year over year to $9.8 billion, and comparable sales grew 4.1% versus prior guidance of approximately 1%. Adjusted operating income margin reached 4.3%, up approximately 40 basis points, and adjusted diluted earnings per share increased 15% to $1.47. The margin benefited from growth in Best Buy Ads and Marketplace and from $34 million in tariff refunds, while higher selling, general, and administrative expenses, particularly employee incentives, limited the improvement.
Domestic segment revenue rose 4.3% to $9.1 billion, driven by 4.5% comparable sales growth, while the domestic gross profit margin increased 60 basis points to 24%. In contrast, international revenue declined 4.2% to $709 million, with comparable sales down 1.8% and a negative foreign exchange impact, despite a 50-basis-point increase in the international gross profit margin to 22.3%. For annual comparison, the company recorded fiscal 2026 revenue of $41.7 billion, net income of $1.1 billion, and earnings per share of $5.04.
The average analyst price target is $84.08, within a wide range of $60 to $100, while the consensus rates the stock "Neutral," reflecting meaningful divergence in estimates of the earnings and margin trajectory. The average target is below the 52-week range high of $91.27, while the highest target exceeds that high and the lowest target is near the range low of $55.10; therefore, the consensus does not provide a uniform bullish signal despite the increase in fiscal 2027 guidance.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue rose 3.6% to $9.8 billion, and comparable sales grew 4.1% versus prior management guidance of approximately 1%. Computing led the growth, followed by home theater products and emerging categories including AI glasses, collectible cards, and health rings. The adjusted operating income margin reached 4.3%, and adjusted diluted earnings per share increased 15% to $1.47.
The company expects fiscal 2027 revenue of between $42.3 billion and $42.8 billion, with comparable sales growth of between 1.9% and 3%. It is targeting an adjusted operating income margin of between 4.4% and 4.5% and adjusted diluted earnings per share of between $6.70 and $6.90. It also plans capital expenditures of approximately $750 million and expects the annual gross profit margin to improve by approximately 30 to 40 basis points.
Technology retailing remains the core business, but Best Buy Ads and Marketplace add new profit streams and contribute to gross profit margin expansion. Best Buy Ads is targeting 10% growth in fiscal 2027 after billings of $900 million in the previous year, while Marketplace gross merchandise value is expected to reach $1.3 billion. Best Buy Business adds more than $1.1 billion annually, and its sales grew 21% in the second quarter of fiscal 2027.
Automated analysis for informational purposes only — not investment advice.
During the second quarter of fiscal 2027, the average selling price in computing increased by a mid-teens percentage, while the number of units sold declined by a high-single-digit percentage. Management expects this dynamic to continue through the remainder of fiscal 2027 and is using replacement of older devices, financing, and promotions to help customers manage prices. The company also purchased some computing inventory early when it had clear visibility into rising costs, but it does not follow a permanent policy of pulling purchases forward.
The August 27, 2026 call stated that Jason Bonfig, who had served as chief customer, product, and fulfillment officer, would officially assume the role of chief executive officer on November 1, 2026, succeeding Corie Barry. The company said they had worked together to align the leadership team and ensure continuity of execution during the handover process. Anne Bramman also joined the company as its new chief financial officer in August 2026, with more than 30 years of experience leading public companies.
Domestic television sales grew by more than 10% year over year, supported by improvements in assortment, inventory, and delivery and installation services. Sales of AI glasses, collectible cards, and health rings more than doubled, and this group added approximately one percentage point to comparable sales growth. Phones also posted their sixth consecutive quarter of growth, while appliances achieved modest growth after improvements in pricing, marketing, and delivery speed.
