Best Buy Co., Inc. (BBY), headquartered in Richfield, Minnesota, retails consumer electronics, home office products, entertainment software, appliances, and related services through its retail stores, as well as its website. Valued at $17.5 billion by market cap, the company also retails pre-recorded home entertainment products through retail stores.
Shares of this retail giant have underperformed the broader market over the past year. BBY has gained 18.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.2%. However, in 2026, BBY stock is up 24%, surpassing the SPX’s 13.2% rise on a YTD basis.
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Narrowing the focus, BBY’s outperformance is apparent compared to State Street SPDR S&P Retail ETF (XRT). The exchange-traded fund has gained about 6.7% over the past year. Moreover, the stock’s double-digit returns on a YTD basis outshine the ETF’s 4.1% gains over the same time frame.
www.barchart.com BBY’s mixed performance reflects a broader push-and-pull between macroeconomic headwinds and internal growth catalysts. On one hand, overall top-line growth was weighed down by cautious consumer spending on high-ticket discretionary electronics, component cost inflation, and broader macro uncertainty. On the other hand, the retailer delivered a turning point driven by a stronger-than-expected fiscal Q1, operational improvements, and a fresh AI-driven technology upgrade cycle across laptops, gaming, and emerging categories like AI glasses and 3D printers. Additionally, supported by fast fulfillment where 65% of online orders arrived or were picked up within a day and high-margin growth in Best Buy Ads and Marketplace, incoming CEO Jason Bonfig is positioning the company to transition beyond traditional retail into an integrated media, advertising, and technology platform.
For the current fiscal year, ending in January 2027, analysts expect BBY’s EPS to grow 2% to $6.56 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 24 analysts covering BBY stock, the consensus is a “Hold.” That’s based on four “Strong Buy” ratings, 18 “Holds,” one “Moderate Sell,” and one “Strong Sell.”
www.barchart.com This configuration is less bullish than a month ago, with five analysts suggesting a “Strong Buy.”
On Aug. 11, Zachary Fadem from Wells Fargo & Company (WFC) assigned a “Hold” rating to BBY, with a price target of $85, implying a potential upside of 2.4% from current levels.
While BBY currently trades above its mean price target of $82.50, the Street-high price target of $95 suggests an upside potential of 14.5%.
On the date of publication, Neha Panjwani 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. For more information please view the Barchart Disclosure Policy here.
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