Is There Still Time to Buy Best Buy?

First-quarter earnings season is all but over, but there are a still stragglers that are announcing results. As I’m writing this, shares of Best Buy Co. (BBY) are up sharply after the electronics retailer blew analysts’ estimates out of the water for the first quarter. This has people asking me whether there’s still time to buy BBY, so let’s dig into the details.

The company noted that sales are stores open longer than a year jumped 1.6% in the first quarter, walloping estimates for a 1.5% drop. Total first-quarter revenue rose 1% year-over-year to $8.53 billion, also topping estimates for $8.28 billion

Net income came in at $188 million, while earnings jumped 36.4% year-over-year to $0.60 per share. The analyst community was looking for earnings of $0.40 per share, so Best Buy posted a stunning 50% earnings surprise.

BBY is one of my rare stocks that earns top marks in both Portfolio Grader and Dividend Grader. This is due to a combination of strong fundamentals and a healthy dividend. I currently recommend BBY in my Dividend Growth newsletter, and I see further upside potential from here.

And I’m not the only one. Looking ahead, Best Buy expects comparable store sales to rise between 1.5% and 2.5% in the second quarter. The company also expects to save $600 million in costs by the end of full-year 2021.

BBY has a solid dividend yield of 2.2% and is a Strong Buy.


Louis Navellier

Louis Navellier

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