Best Buy Co. (BBY) Sinks on Downgrade

BBY investors were likely spooked this morning by Barrons's report: "Best Buy Is Downgraded. 'Needs' Over 'Wants' Are Priority This Holiday Season." For more coverage, read the full article here. On the back of this news, Best Buy Co. sank -2.8% to a price of $81.73. Are the markets overreacting?

Best Buy Co., Inc. retails technology products in the United States and Canada. The company belongs to the Consumer Cyclical sector, which has an average price to earnings (P/E) ratio of 24.11 and an average price to book (P/B) ratio of 3.11. In contrast, Best Buy Co. has a trailing 12 month P/E ratio of 11.9 and a P/B ratio of 4.6.

At today's price of $81.73 per share, Best Buy Co. is 4.61% away from its target price of $78.13, and on average, analysts give the stock a rating of hold. 4.3% of the company's shares are linked to short positions, and 82.5% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.