With a market cap of $14.3 billion, Best Buy Co., Inc. (BBY) is a leading multinational specialty retailer of consumer electronics, appliances, and related services. Operating in the United States and Canada, the company serves customers through various brands such as Best Buy, Geek Squad, Lively, and Pacific Kitchen and Home.
Companies valued at more than $10 billion are generally considered “large-cap” stocks, and Best Buy fits this criterion perfectly. Best Buy offers a wide range of products and services through its physical stores and online platforms, including technology solutions, home essentials, and health-focused offerings.
Shares of the Richfield, Minnesota-based company have declined 34.7% from its 52-week high of $103.71. Over the past three months, its shares have decreased 7.3%, underperforming the broader Dow Jones Industrials Average’s ($DOWI) 1.4% rise during the same period.
Longer term, BBY stock is down over 21% on a YTD basis, a steeper drop than DOWI’s marginal decline. Moreover, shares of the consumer electronics retailer have dipped 27.6% over the past 52 weeks, compared to DOWI’s 8.6% increase over the same time frame.
The stock has been in a bearish trend, consistently trading below its 50-day and 200-day moving averages since March. However, it has risen above its 50-day moving average since May.
Despite posting a better-than-expected Q1 2026 adjusted EPS of $1.15, Best Buy shares fell 7.3% on May 29 due to a significant cut in its full-year comparable sales and adjusted EPS guidance to $6.15 – $6.30. Investor sentiment was further dampened by concerns over rising U.S. tariffs, which could increase costs on imported goods, roughly 30% – 35% of Best Buy’s inventory, pressuring margins and consumer demand for high-ticket items.
Additionally, BBY stock has performed weaker than its rival, Ulta Beauty, Inc. (ULTA). ULTA stock has returned 8.9% YTD and 23.8% over the past 52 weeks.
Despite the stock’s underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 23 analysts in coverage, and as of writing, BBY is trading below the mean price target of $79.10.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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