Best Buy Co., Inc. raised its fiscal 2027 revenue guidance to $42.3-$42.8 billion and adjusted earnings guidance to $6.70-$6.90 per share, with comparable sales now expected to increase 1.9-3% versus a prior outlook ranging from a 1% decline to 1% growth. The Zacks Consensus Estimate for fiscal 2027 earnings stands at $6.79 per share, above $6.43 in fiscal 2026, and that estimate has moved 3.8% higher over the past four weeks, following a latest quarterly earnings surprise of 7.3%. The stock now trades at 12.5X forward 12-month earnings, above its five-year median of 11.5X, though still within its five-year range of 7.0X to 15.5X, with a PEG ratio of 2.10. Best Buy generated $1.30 billion of operating cash flow in the first half, up from $783 million a year earlier, and held $2.26 billion in cash and cash equivalents at quarter-end versus $1.46 billion a year ago, while carrying a dividend yield of about 4.4% and expecting approximately $300 million of fiscal 2027 share repurchases. Risks include industry-wide memory cost increases that lifted computing average selling prices in the mid-teens in the second quarter while unit volumes fell in the high single digits, a planned roughly 20 basis point increase in the annual adjusted SG&A rate, and a promotional backdrop reinforced by Target Corporation's 3.8% second-quarter comparable sales growth and price cuts on more than 10,000 frequently purchased items and Walmart Inc.'s 23% global e-commerce growth. The stock carries a Zacks Rank #3 (Hold) along with Value, Growth, Momentum and VGM Scores of A.
Target CorporationTarget's 3.8% Q2 comparable sales growth and price cuts on 10,000+ items reinforce a promotional backdrop that pressures Best Buy.
Walmart Inc.
Best Buy Co. IncBest Buy raised fiscal 2027 revenue and adjusted EPS guidance and comparable sales outlook, with consensus estimates moving higher.
