Stock Performance: Best Buy Co., Inc. (NYSE:BBY) has experienced a significant decline, with shares down 13.8% year-to-date. This drop is attributed to two major selloffs in March and April, where shares fell by 13.3% and 25.8%, respectively.
Revenue Guidance Cut: In March, the company revised its fiscal year 2026 revenue guidance down to a midpoint of $41.5 billion from $41.8 billion, primarily due to the impact of tariffs.
Jim Cramer's Insights
Tariff Impact: Jim Cramer highlighted the adverse effects of tariffs on Best Buy, noting that the stock suffered considerable losses and that many investors are concerned about the company's tariff-related challenges.
Dividend Yield: Cramer pointed out that Best Buy currently offers a dividend yield of 5.6%, making it one of the highest-yielding retailers. However, he expressed skepticism about the sustainability of this yield, especially in light of potential dividend cuts.
Market Context and Future Outlook
PC Cycle and Tariffs: Cramer previously mentioned that Best Buy could benefit from a significant PC cycle driven by Microsoft’s Copilot, but he noted that this cycle has not materialized as expected. Additionally, he warned that tariffs could increase prices for appliances, further complicating Best Buy's market position.
Investment Perspective: While acknowledging Best Buy's potential, the commentary suggests that there are AI stocks with better prospects for higher returns and lower risk, indicating a shift in investment focus towards these alternatives.
Conclusion
Overall Sentiment: The article reflects a cautious outlook on Best Buy, emphasizing the challenges posed by tariffs and the uncertain future of its dividend, while also suggesting that investors may find more promising opportunities in the AI sector.
BBY
$72.24+Infinity%1D
Analyst Views on BBY
Wall Street analysts forecast BBY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BBY is 84.67 USD with a low forecast of 60.00 USD and a high forecast of 99.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
Wall Street analysts forecast BBY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BBY is 84.67 USD with a low forecast of 60.00 USD and a high forecast of 99.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Buy
7 Hold
1 Sell
Moderate Buy
Current: 72.890
Low
60.00
Averages
84.67
High
99.00
Current: 72.890
Low
60.00
Averages
84.67
High
99.00
Evercore ISI
Greg Melich
In Line
downgrade
$85 -> $80
2025-12-09
Reason
Evercore ISI
Greg Melich
Price Target
$85 -> $80
2025-12-09
downgrade
In Line
Reason
Evercore ISI analyst Greg Melich lowered the firm's price target on Best Buy to $80 from $85 and keeps an In Line rating on the shares as part of adjusting estimates and targets among the firm's retail broadlines and hardlines coverage.
Berenberg
Buy
upgrade
2025-12-05
Reason
Berenberg
Price Target
2025-12-05
upgrade
Buy
Reason
Berenberg raised the firm's price target on Balfour Beatty to 760 GBp from 710 GBp and keeps a Buy rating on the shares.
Deutsche Bank
Jonathan Coubrough
Buy
upgrade
2025-12-05
Reason
Deutsche Bank
Jonathan Coubrough
Price Target
2025-12-05
upgrade
Buy
Reason
Deutsche Bank analyst Jonathan Coubrough raised the firm's price target on Balfour Beatty to 715 GBp from 650 GBp and keeps a Buy rating on the shares.
Morgan Stanley
Simeon Gutman
Equal Weight
maintain
$75 -> $82
2025-11-26
Reason
Morgan Stanley
Simeon Gutman
Price Target
$75 -> $82
2025-11-26
maintain
Equal Weight
Reason
Morgan Stanley analyst Simeon Gutman raised the firm's price target on Best Buy to $82 from $75 and keeps an Equal Weight rating on the shares. Sustained momentum from replacement cycles and "solid" execution underpin near-term performance, but longer-term upside hinges on a recovery in higher-margin categories, the analyst tells investors in a post-earnings note.
About BBY
Best Buy Co., Inc. is engaged in personalizing and humanizing technology solutions. The Company has two segments: Domestic and International. The Domestic segment comprises its operations in all states, districts and territories of the United States and its Best Buy Health business and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, Geek Squad, Imagine That, Insignia, Lively, My Best Buy, My Best Buy Memberships, Pacific Kitchen and Home, TechLiquidators and Yardbird; and the domain names bestbuy.com, lively.com, techliquidators.com and yardbird.com. The International segment comprises all its operations in Canada under the brand names Best Buy, Best Buy Express, Best Buy Mobile, Geek Squad and TechLiquidators and the domain names bestbuy.ca and techliquidators.ca. The Company’s product categories include computing and mobile phones, consumer electronics, appliances, entertainment, services and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
