Wal-Mart/Best Buy Lead Major Holiday Retailers

For today's edition of our bulletin, we used our website's advanced screening functions to search for data on major US retailers--Amazon.com, Best Buy, Target, and Wal-Mart--ahead of Black Friday and the kick off to the holiday shopping season. They are presented alphabetically. Best Buy and Wal-Mart are rated BUY. Amazon and Target are rated HOLD by our systems.

Ticker

Company Name

Market Price

Valuation

Last 12-M Return

1-M Forecast Return

1-Yr Forecast Return

P/E Ratio

VE Rating

AMZN

AMAZON.COM INC

1129.88

40.61%

49.38%

0.20%

2.35%

277.38

3

BBY

BEST BUY

55.83

8.98%

21.40%

0.76%

9.13%

13.89

4

TGT

TARGET CORP

58.14

-7.75%

-23.63%

0.11%

1.26%

12.11

3

WMT

WAL-MART STORES

97.47

35.34%

40.87%

0.72%

8.65%

22.25

4

The holiday season used to be THE story for retailers. However, lately so many retailers are desperate to stay relevant vs online giants such as Amazon that big holiday sales almost seem secondary. For this season we see yet another battle royale shaping up between giants like Wal-Mart and Target on one side, and Amazon.com on the other.

Today's Wall Street Journal notes that the big retailers have adopted a variety of pricing strategies to deal with Amazon this season. Target has changed its emphasis, structuring more sale weekends during the season with less focus on Black Friday. Wal-Mart is offering different prices for online and store items in an effort to lure traffic. Retailers like Best Buy offered Black Friday-like discounts far earlier in November than in prior years.

For today's bulletin, we take a look at Best Buy (BBY) in depth. Best Buy operates in a single business segment, selling personal computers and other home office products, consumer electronics, entertainment software, major appliances and related accessories principally through its retail stores. They operate retail stores and commercial Websites under the brand names Best Buy, Media Play, On Cue, Sam Goody, Suncoast, Magnolia Hi-Fi and Future Shop. They also operate in three segments: Best Buy, Musicland, and International.

Below is our latest data for Best Buy (BBY):

ValuEngine continues its BUY recommendation on Best Buy for 2017-11-17. Based on the information we have gathered and our resulting research, we feel that Best Buy has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Price Sales Ratio.

 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

56.26 0.76%

3-Month

56.36 0.95%

6-Month

56.99 2.08%

1-Year

60.93 9.13%

2-Year

62.35 11.68%

3-Year

65.48 17.29%

Valuation & Rankings

Valuation

8.98% overvalued

Valuation Rank(?)

41

1-M Forecast Return

0.76%

1-M Forecast Return Rank

93

12-M Return

21.40%

Momentum Rank(?)

66

Sharpe Ratio

0.64

Sharpe Ratio Rank(?)

79

5-Y Avg Annual Return

26.06%

5-Y Avg Annual Rtn Rank

92

Volatility

40.90%

Volatility Rank(?)

40

Expected EPS Growth

5.72%

EPS Growth Rank(?)

29

Market Cap (billions)

19.58

Size Rank

94

Trailing P/E Ratio

13.89

Trailing P/E Rank(?)

83

Forward P/E Ratio

13.14

Forward P/E Ratio Rank

70

PEG Ratio

2.43

PEG Ratio Rank

19

Price/Sales

0.49

Price/Sales Rank(?)

85

Market/Book

4.99

Market/Book Rank(?)

28

Beta

1.48

Beta Rank

21

Alpha

0.08

Alpha Rank

72

Disclosure: None.

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