Best Buy

BBY

Market cap $18.1B

Best Buy currently looks substantially stronger on revenue, generating significantly higher sales volumes than GameStop. The two companies exhibit a highly seasonal revenue pattern over the last eight quarters, with massive quarter-over-quarter spikes followed by consistent subsequent declines.

Futures are trading lower as we get ready for the start of second-quarter earnings this week, after a solid winning week on Wall Street.

With the S&P 500 dividend yield sitting well below 2%, income investors chasing meaningful cash flow are increasingly forced outside the usual REIT and utility sectors.

Best Buy delivered a strong Q1, beating EPS and revenue estimates, with comparable store sales up 2% and international revenue rising 7%. I remain cautious on BBY after its recent price surge and see near-term volatility risk from macro headwinds and potential inflationary pressures. Management is focused on ads and store optimization, aiming for gross profit rate expansion and leveraging partnerships with OpenAI and Alphabet for future growth.

The LSEG Retail/Restaurant Index reported Q1 2026 earnings growth of 27.2%. Retail earnings in the first quarter of 2026 received a significant boost from a historic tax refund season, reinforcing consumer spending at a time when the labor market remained resilient. Q2 2026 earnings are currently expected to mark the weakest growth rate of the year, with consensus forecasts calling for a gradual improvement during the second half of the year.

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Best Buy TodayBBYBest Buy$75.11 -2.53 (-3.25%) As of 02:16 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$55.10▼$84.99Dividend Yield5.11%P/E Ratio13.91Price Target$79.50Add to WatchlistBest Buy NYSE: BBY is accomplishing what many thought unlikely.

While the decline of brick-and-mortar storefronts has been well documented, Best Buy plans to open new stores in 2027.

Best Buy is undergoing a pivotal leadership change, with Jason Bonfig—architect of its marketplace and retail media—taking the helm as CEO. BBY is strategically shifting toward higher-margin growth engines: expanding its third-party marketplace, scaling Best Buy Ads, and leveraging Geek Squad services. The stock trades at a discounted 12x trailing earnings and 6.3% yield, undervaluing BBY's transformation potential and margin expansion opportunities.

Long-term bond yields persist despite pressure. But investors looking for income can still find plenty of attractive opportunities with dividend-paying stocks that have healthy yields. “23 stocks pay huge dividends. They should be a better bet than treasuries.” —Barron's Weekly reported in October, 2024. It's still true. Steven Wieting, strategist at CitiWealth, told Barron's that a growing dividend is a benefit for shareholders and identifies companies with strong balance sheets.“Nobody can fake a dividend,” he said.