Best Buy (BBY) Stock Forecast & Price Target

Best Buy Co. achieved over $41 billion in consolidated sales for 2024, establishing itself as the largest pure-play consumer electronics retailer in the U.S. with an approximate 8% share of the North American market. The company's successful investments in e-commerce fulfillment, which have doubled the U.S. e-commerce channel since prepandemic levels, are projected to contribute to a mid-30% share of total sales moving forward. Strong performance in domestic entertainment, highlighted by a 38% increase in sales driven by gaming and other key categories, illustrates effective sales growth that enhanced the company's overall profitability metrics.

Best Buy Co. reported consolidated sales of over $41 billion for 2024, solidifying its position as the largest pure-play consumer electronics retailer in the US with an 8% market share. However, the company faces significant financial challenges, including a year-over-year gross margin decline of 30 basis points to 23.2%, driven by a shift towards lower-margin product categories such as gaming and computing. Additionally, ongoing pressure on discretionary consumer spending is anticipated to further impact sales, particularly in key segments like appliances and consumer electronics, making the outlook for the company increasingly negative.