Valued at $15.6 billion by market cap, Best Buy Co., Inc. (BBY) operates as a specialty retailer, selling consumer electronics, home office products, entertainment software, communication, food preparation, and other appliances. The Richfield, Minnesota-based retailer operates through numerous stores spread across the U.S. and Canada.

The company has significantly underperformed the broader market over the past year. BBY stock has declined 1.3% over the past 52 weeks and 14.5% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 12.3% gains over the past year and a marginal 19 bps uptick in 2025.

Zooming in further, Best Buy has performed slightly better than the industry-focused SPDR S&P Retail ETF’s (XRT) 5.3% decline over the past 52 weeks but underperformed XRT’s 6.6% drop on a YTD basis.

Best Buy’s stock prices plunged 13.3% following the release of its disappointing Q4 results on Mar. 4. Q4 2025 consisted of 13 weeks, one less than the 14 weeks in Q4 2024, which contributed to $675 million in sales. After adjusting for the extra week, Best Buy’s revenues for the quarter dropped 16 bps year-over-year to $13.9 billion. Meanwhile, the company incurred $475 million impairment charges related to its Best Buy Health reporting unit, as the company now expects the unit to deliver lower growth compared to the previous forecasts. This significantly impacted the company’s GAAP-based net income during the quarter and unsettled investor confidence.

Best Buy also observed a slight decline in adjusted non-GAAP margins (excluding non-recurring items like impairment), leading to a 5.2% year-over-year decrease in adjusted EPS to $2.58.

For the current fiscal year, ending in January 2026, analysts expect BBY to report a 2.2% year-over-year decline in adjusted EPS to $6.23. The company has a mixed earnings surprise history. While it surpassed the Street’s bottom-line estimates thrice over the past four quarters, it missed the projections on one other occasion.

The stock holds a consensus “Moderate Buy” rating overall. Of the 23 analysts covering the stock, opinions include 10 “Strong Buys,” 12 “Holds,” and one “Moderate Sell.”

This configuration is slightly less bullish than two months ago, when 11 analysts gave “Strong Buy” recommendations.

On May 13, DA Davidson analyst Michael Baker reiterated a “Buy” rating on BBY, but lowered the price target to $95.

As of writing, BBY’s mean price target of $88.15 represents a 20.1% premium to current price levels, while the street-high target of $110 suggests a staggering 49.9% upside potential.