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Best Buy Co. Inc(BBY)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
2-STAR RATING
Consider higher Upturn Star rating
BUY for 76 days
PROFIT SINCE LAST BUY
+29.13%
LAST CLOSE
$94.56
09/17/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for BBY

09/17/2026: BBY (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Best Buy is a prominent omnichannel retailer specializing in consumer electronics, appliances, and technical services. The company maintains a leading position by pairing physical store convenience with the Geek Squad support ecosystem, which distinguishes it from pure-play online competitors. Its primary investment story centers on transitioning from a traditional retailer to a service-oriented health and home-tech provider. However, the company faces significant execution and competitive risks from large-scale e-commerce platforms and cyclical fluctuations in consumer discretionary spending. Best Buy often appeals to value-oriented investors due to its stable cash flow and consistent dividend, making it a potential fit for income-focused portfolios monitoring the company's service-sector expansion.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth is moderate and tied closely to cyclical consumer electronics cycles.
Momentum investorWeak fitThe stock often lacks strong, sustained directional momentum compared to high-growth tech sectors.
Value investorStrong fitThe company is often reasonably priced relative to its cash flow and retail positioning.
Dividend investorStrong fitBest Buy offers a reliable dividend supported by stable free cash flow.
Low-risk investorMixed fitWhile established, the retail industry is inherently sensitive to economic cycles.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumThe stock can be sensitive to quarterly earnings misses and macroeconomic headlines.
Valuation riskLowThe company typically trades at a valuation that reflects its steady, mature retail status.
Competition risk (E-commerce)HighAmazon and other digital players maintain constant pressure on margins and pricing.
Business qualityMediumBest Buy has a proven, resilient business model with strong brand equity.
Dividend incomeLowThe dividend is generally considered stable and well-covered by earnings.
Execution riskMediumSuccess depends on managing complex inventory and evolving service offerings effectively.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -29.55%
Avg. Invested days 32
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/17/2026

Upturn Scorecard

Upturn Star Rating

BBY receives a 3-star rating, supported by solid company fundamentals, solid quantitative characteristics, and solid analyst coverage. The rating is constrained by weak price momentum, and limited analyst upside.

Company Fundamentals

BBY has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and strong ownership. In FY2026 versus FY2025, solid earnings growth (+15.3%) is partially offset by soft cash generation (FCF margin 3.0%), moderate revenue growth (+0.4%), soft profitability (net margin 2.6%).

Financial Health Rating

BBY's financial health is supported by strong cash strength, including free-cash-flow generation of $1.3B (3.0% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

Earnings growth is BBY's strongest growth driver at +15.3% FY2026 versus FY2025 (solid, 4 stars). By comparison, while free-cash-flow growth (-9.6%, negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

Institutional ownership is 97.0% and approximately 93.8% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 6.52% supports management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 12.08%
State Street Corp 6.25%
Vanguard Capital Management, LLC 6.08%
Vanguard Portfolio Management, LLC 4.64%
Geode Capital Management, LLC 3.66%

Unit Economics (Per $1K Revenue)

BBY generates approximately $225 of gross profit, $42 of operating income, and $30 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Strong margins, cash conversion, and capital efficiency support the rating.

Economic Dimensions

Effective Tax Rate: 23.97%

Quantitative Style Profile

BBY has a high-quality, large-cap, liquid profile. Weak momentum is the primary drawback, while elevated volatility.

Style Classification

Quality Focused

Value-OrientedQuality TiltHigh VolatilityLarge / Mega Cap StabilityShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 19.39B USD
Price to earnings Ratio 15.51
1Y Target Price 86.7
Price to earnings Ratio 15.51
1Y Target Price 86.7
Volume (30-day avg) 4.0M shares
Beta 1.3
52 Weeks Range 53.81 - 95.85
Updated Date 09/16/2026
52 Weeks Range 53.81 - 95.85
Updated Date 09/16/2026
Dividends yield (FY) 4.10%
Basic EPS (TTM) 5.96

How Company Makes Money

Business areaWhat it includesRetail investor read
Consumer ElectronicsTVs, computers, phones, and gaming consoles sold in stores and online.This is the core revenue driver, prone to economic cycles.
Services and SupportGeek Squad support, installations, and extended warranties.High-margin revenue that builds customer loyalty.
AppliancesMajor home appliances and smart home devices.Provides a steadier, less tech-dependent revenue stream.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Earnings Date

Report Date 2026-08-27
When Before Market
Estimate 1.37
Actual 1.47

Profitability

Profit Margin 3.01%
Operating Margin (TTM) 3.9%

Management Effectiveness

Return on Assets (TTM) 7.25%
Return on Equity (TTM) 43.13%

Valuation

Trailing PE 15.51
Forward PE 13.97
Enterprise Value 21.43B
Price to Sales(TTM) 0.46
Enterprise Value 21.43B
Price to Sales(TTM) 0.46
Enterprise Value to Revenue 0.51
Enterprise Value to EBITDA 8.31
Shares Outstanding 209.73M
Shares Floating 196.68M
Shares Outstanding 209.73M
Shares Floating 196.68M
Percent Insiders 6.52
Percent Institutions 97.04

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Best Buy Co. Inc

Exchange NYSE
Headquarters Richfield, MN, United States
IPO Launch date 1985-04-19
CEO & Director Ms. Corie Sue Barry
Sector Consumer Cyclical
Industry Specialty Retail
Full time employees 82000
Full time employees 82000

Best Buy Co., Inc. offers technology products and solutions in the United States, Canada, and internationally. The company provides computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters that includes home theater accessories, soundbars, and televisions. It also offers appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, gaming, toys, and virtual reality, as well as hardware and software, and augmented reality glasses and other software products; and other products, such as baby, food and beverage, luggage, and outdoor living products. In addition, the company provides delivery, installation, marketplace commissions, memberships, repair, set-up, technical support, health-related, and warranty-related services. It offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, Best Buy Marketplace, Geek Squad, Imagine That, Insignia, Lively, Jitterbug, My Best Buy, My Best Buy Memberships, Pacific Kitchen, Home, TechLiquidators, and Yardbird brand names, as well as domain names comprising bestbuy.com, lively.com, techliquidators.com, yardbird.com, bestbuy.ca, and techliquidators.ca. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was incorporated in 1966 and is headquartered in Richfield, Minnesota.