Best Buy
Over the past 12 months, shares of technology retailer Best Buy Co. Inc. (NYSE: BBY) have plunged 33.4%. Since late November when shares traded at a 52-week high, the stock has fallen by nearly 42%. The company reports results first thing Tuesday morning.
Late in July, the company cut its forecast for the second quarter, blaming high inflation and sinking customer demand compared to the year-ago quarter, when federal stimulus checks ginned up strong demand for electronics. Best Buy announced two weeks later that it would cut jobs but did not specify how many people would be fired.
Analysts have mixed sentiments on the stock. Of 27 brokerages covering the company, 16 rate the shares at Hold and nine have a Buy or Strong Buy rating. At a share price of around $78.20, the upside potential based on a median price target of $82.00 is about 4.6%. Based on a high price target of $114.00, the upside potential is 45.8%.
For the company’s fiscal 2023 second-quarter revenue, analysts are forecasting $10.24 billion, down 3.8% sequentially and 13.6% lower year over year. Adjusted EPS are forecast at $1.29, down 17.7% sequentially and by 56.7% year over year. For the full fiscal year ending in January, current estimates call for EPS of $6.08, down 39.3%, on sales of $45.85 billion, down 11.4%.
The stock trades at 12.9 times expected 2023 EPS, 10.8 times estimated 2024 earnings of $7.22 and 9.4 times estimated 2025 earnings of $8.28 per share. The stock’s 52-week range is $61.29 to $141.97. Best Buy pays an annual dividend of $3.52 (yield of 4.46%). Total shareholder return for the past year is negative 33.6%.
Pinduoduo
Pinduoduo Inc. (NASDAQ: PDD) focuses on an e-commerce marketplace that matches China’s farmers and agricultural product wholesalers directly with the country’s consumers. Like other tech companies, Pinduoduo has taken a beating over the past year, dropping nearly 40% of its share price value as a result of tighter government regulation and a threatened U.S. delisting. Since bottoming in mid-March, the stock price has more than doubled. Recent solid reports from Alibaba and JD.com have also boosted the share price. Pinduoduo is on deck to report Monday morning.
Of the 39 analysts covering the stock, 29 have a Buy or Strong Buy rating. The other 10 rate the shares at Hold. At a price of around $59.80 per share, the upside potential based on a median price target of $65.11 is about 8.9%. At the high price target of $128.29, the upside potential is about 165%.
Analysts expect fiscal 2022 second-quarter revenue to be $3.44 billion, down 8.4% sequentially and 3.6% lower year over year. Adjusted EPS are forecast at $0.41, down 11% sequentially and by 6.8% year over year. For the full fiscal year, Pinduoduo is forecast to post EPS of $1.98, up 31.6%, on sales of $16.02 billion, up 11.4%.
Pinduoduo shares trade at 30.2 times expected 2022 EPS, 22.6 times estimated 2023 earnings of $2.65 and 17.2 times estimated 2024 earnings of $3.48 per share. The stock’s 52-week range is $23.21 to $109.79. The company does not pay a dividend, and the total shareholder return for the past year was a negative 38.9%.
Originally posted at 24/7 Wall St.
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