- Best Buy (BBY, Financial) boasts a remarkable ROE of 33%, outperforming the industry average of 18%.
- Analysts predict an average price target of $87.03, implying a potential upside of 44.01% from the current price.
- Despite strong metrics, earnings have declined, possibly due to a high dividend payout.
Best Buy Co Inc (BBY) shines with a robust return on equity (ROE) of 33%, significantly outpacing the industry average of 18%. This strong performance metric underscores the company's ability to efficiently generate profits relative to shareholder equity. However, it's worth noting that Best Buy's earnings have experienced a decline over the past five years, potentially linked to its high dividend payout strategy, which reinvests only 38% of profits, potentially curbing further growth.
Wall Street Analysts' Forecast
Analyst projections for Best Buy Co Inc (BBY, Financial) reveal a one-year average price target of $87.03, with estimates ranging from a high of $110.00 to a low of $64.00. This average target suggests a potential upside of 44.01% from the current share price of $60.43. For a deeper dive into specific analyst estimates, visit the Best Buy Co Inc (BBY) Forecast page.
Currently, based on insights from 29 brokerage firms, Best Buy Co Inc (BBY, Financial) holds an average recommendation rating of 2.7, which aligns with a "Hold" status on the rating spectrum where 1 indicates Strong Buy and 5 denotes Sell.
Utilizing GuruFocus estimates, the projected GF Value for Best Buy Co Inc (BBY, Financial) in the next year stands at $75.95. This suggests an upside of 25.68% from its current share price of $60.43. GF Value reflects GuruFocus' valuation estimate, derived from historical trading multiples, business growth history, and future performance projections. For more comprehensive data, explore the Best Buy Co Inc (BBY) Summary page.
