Best Buy Earnings: Consumers Still Cautious, but Shares Continue to Look Cheap for Patient Investors

Narrow-moat Best Buy’s BBY fiscal 2024 first-quarter results aligned closely with our expectations, giving us little reason to change our $99 fair value estimate beyond a small bump for time value, particularly as management maintained its full-year guidance. While the shares ticked slightly higher after the release, they continue to trade at about a 30% discount to our fair value estimate, providing investors with an attractive entry point, particularly with a dividend yield approaching 5.5% at current market prices.