Best Buy Co., Inc. BBY
Best Buy's Q2 FY2027 results (reported August 27, 2026) delivered enterprise revenue of $9.8 billion with comparable sales growth of 4.1%, prompting management to raise full-year guidance — a clear acceleration from FY2026's 0.4% revenue growth and the first sustained positive comp trend in three years. The stock trades at a P/E of 13.9x, roughly 50% below the peer median of 27.8x, while smart money positioning turned modestly positive (score 0.0198 as of the quarter ended 2026-06-30).
Persistent insider net selling of 3.36M shares worth $288.8M over 24 months and operating margins stuck near 4.2% versus 5.8% in FY2022 temper enthusiasm, but the combination of accelerating top-line growth, raised guidance, AI-driven omnichannel initiatives, and a deeply discounted valuation supports upgrading to buy.
What could go wrong
- Margin stagnation. Operating margin remains at 4.2% in FY2026 versus 5.8% in FY2022; failure to re-expand margins limits earnings power even with revenue growth.
- Persistent insider selling. Net insider disposition of 3.36M shares worth $288.8M over 24 months, including Schulze's sales on 2026-07-14, signals continued lack of insider conviction at these levels.
- Consumer cyclicality. Electronics retail is discretionary; any macro deterioration could reverse the comp sales momentum seen in Q2 FY2027.
- Sell-the-news dynamic. Shares declined approximately 5% on the Q2 beat despite raised guidance, suggesting expectations may already be pricing in improvement.
What would change my mind
Where this comes from: news articles published 2026-08-27 (GuruFocus, Zacks, Proactive Investors) · derived_metrics, fiscal year ended 2026-01-31 · peer_relative · smart_money. Orin's read on BBY; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All BBY filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| State Street | $1.1B | 0.0% of fund |
| Vanguard Capital Management | $980.9M | 0.0% of fund |
| Vanguard Portfolio Management | $699.6M | 0.0% of fund |
| Geode Capital Management | $617.9M | 0.0% of fund |
| Charles Schwab Investment Management | $521.5M | 0.1% of fund |
| Invesco | $385.1M | 0.0% of fund |
82 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 82 Form 4 filings, net −$316.6M. Of the 50 on hand, 0 were open-market purchases and 19 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about BBY
Orin answers questions about BBY from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 15.1× | 13.3× | 79.6× |
| EV/EBITDA | 8.1× | 7.3× | — |
| P/S | 0.45× | 0.41× | — |
| P/B | 6.0× | 6.6× | — |
Its P/E sits 80th percentile of its own last 5 years (+0.37σ from its own mean).
4.0%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.3B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$84
$60 – $100 · −7% against today's price
- 11 buy or overweight
- 24 hold
- 6 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| BBYBest Buy Co., Inc. | $19B | 15.1× | 8.1× | 22.7% | 3.0% | 43% |
| AMCRAmcor plc | $20B | 17.9× | 10.0× | 20.0% | 4.7% | 9% |
| CASYCasey's General Stores, Inc. | $22B | 28.6× | 16.9× | 23.8% | 4.1% | 20% |
| GPCGenuine Parts Company | $18B | 495.2× | 32.4× | 36.2% | 0.1% | 1% |
| LULULululemon Athletica Inc. | $12B | 8.4× | 4.8× | 56.1% | 12.8% | 30% |
| PKGPackaging Corporation of America | $21B | 31.2× | 13.7× | 20.1% | 7.2% | 15% |
| WSMWilliams-Sonoma, Inc. | $27B | 23.0× | 14.2× | 47.2% | 14.7% | 58% |
The median is of the 6 peers listed above and nothing else — check it against the column. This company trades 41.6% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $76 | $75.93 · −0% | 2026-06-10 |
| Levered DCF | $66 | $75.93 · −14% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.