Best Buy stock gains on strong Q2 comp despite tariff uncertainty

Published 29/08/2025, 12:56
© Reuters.

Investing.com - Best Buy Co., Inc. (NYSE:BBY) maintained its Neutral rating and $75 price target from Piper Sandler following its second-quarter earnings report. According to InvestingPro data, the stock currently trades at a P/E ratio of 17.5x, with analysts setting price targets ranging from $60 to $94.

The electronics retailer posted a 1.6% comparable sales increase in Q2, marking its strongest performance in fourteen quarters, driven primarily by Nintendo Switch 2 and laptop sales, according to Piper Sandler.

Despite the positive comparable sales, Best Buy’s consumer electronics (TVs) and appliance segments continued to face challenges, with negative trends similar to those observed in the first quarter.

Best Buy reiterated its full-year guidance due to tariff uncertainty in the second half, though the company indicated sales are tracking toward the high end of its forecast range and guided third-quarter comparable sales above expectations.

Piper Sandler noted that Best Buy’s stock multiple is unlikely to expand until investors gain more confidence in the company’s market share dynamics in the TV and appliance categories.

In other recent news, Best Buy Co. reported second-quarter earnings for fiscal year 2026 that exceeded expectations, with earnings per share of $1.28 compared to the forecast of $1.22. The company also reported revenue of $9.4 billion, surpassing the anticipated $9.23 billion. This performance was driven by positive comparable sales growth, marking the strongest growth since 2021, as noted by KeyBanc Capital Markets. Evercore ISI acknowledged Best Buy’s 1.6% comparable sales growth in the second quarter and raised its price target from $75 to $77, maintaining an "In Line" rating. Goldman Sachs also increased its price target for Best Buy to $95, maintaining a Buy rating, despite a slight miss on gross margin. The firm highlighted that Best Buy is trending toward the high end of its fiscal year 2026 sales guidance range of -1% to 1%. Additionally, Best Buy’s management provided third-quarter sales guidance 150 basis points above consensus estimates. These recent developments reflect strong sales momentum and positive investor sentiment toward the company’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.