Best Buy (BBY) Stock Forecast & Price Target

Best Buy Co. is the largest pure-play consumer electronics retailer in the US, with consolidated sales exceeding $41 billion in 2024, reflecting an 8% share of the North American market and a 33% share of offline sales. The company's strategic investments in e-commerce fulfillment during the pandemic have positioned this channel to represent approximately 30% of sales moving forward, effectively doubling from pre-pandemic levels. Furthermore, anticipated demand growth in computing driven by AI upgrades and the positive contributions from marketplace and advertising to gross margins support a positive outlook for the company, particularly as they project a 30 basis points expansion in gross margins in the coming years.

Best Buy Co. reported consolidated sales of over $41 billion in 2024, maintaining its position as the largest pure-play consumer electronics retailer in the US, but faced a decline in domestic comparable sales that is anticipated to continue, with guidance suggesting a low single-digit percentage decline. Although engaged web traffic increased by 4% year-over-year, overall sales trends showed a concerning 10% year-over-year decline, indicating potential weakness in consumer demand. Furthermore, external data and store checks suggest that total comparable sales experienced a low single-digit percentage decline, raising concerns for future performance and prompting expectations for EPS guidance in the $6.50-$6.60 range, which may fall short of consensus estimates.