Is BBY a good stock to buy? We came across a bullish thesis on Best Buy Co., Inc. on MaxDividends’s Substack by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on BBY. Best Buy Co., Inc.’s share was trading at $61.71 as of March 24th. BBY’s trailing and forward P/E were 12.46 and 9.51 respectively according to Yahoo Finance.
Best Buy Co., Inc. offers technology products and solutions in the United States, Canada, and internationally. BBY entered the holiday quarter with cautious expectations amid broader retail softness, yet it emerged as one of the few early gainers, with shares climbing 4.25% to $64.21 following an earnings beat. The company reported adjusted EPS of $2.61, up 1.2% year over year and ahead of the $2.47 consensus, while revenue came in slightly below expectations at $13.81B, with comparable sales down 0.8%.
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The key takeaway for investors was profitability: margins held firm despite a challenging consumer electronics environment, with domestic adjusted SG&A falling to 15.9% of revenue, aided by lower compensation and health costs. Revenue weakness was concentrated in home theater and appliances, partially offset by growth in computing and mobile phones, while online sales accounted for a remarkable 39% of domestic revenue, underscoring Best Buy’s successful shift toward e-commerce.
Beyond core retail, management highlighted scalable growth avenues such as the digital Marketplace and Best Buy Ads business, providing a less cyclical source of margin expansion. Signaling confidence in cash generation, the company raised its quarterly dividend 1% to $0.96 per share. Looking ahead, Best Buy expects adjusted EPS of $6.30–$6.60 and revenue of $41.2B–$42.1B, reflecting a strategy focused on maintaining the base, executing efficiently, and protecting margins rather than relying on a macro-driven sales surge.
While shares remain down 8% year-to-date and 31% over the past 12 months, the quarter demonstrated the company’s ability to navigate a weak retail backdrop, stabilize market share, and sustain profitability, providing investors with reassurance and a compelling risk/reward profile for long-term exposure.
Previously, we covered a bullish thesis on Target Corporation (TGT) by LongYield in May 2025, which highlighted the company’s digital momentum, cost control, selective market share gains, and strong capital deployment despite a soft retail environment. TGT’s stock price has appreciated by approximately 22.93% since our coverage. Serhio MaxDividends shares a similar view on Best Buy Co., Inc. (BBY) but emphasizes profitability resilience, margin control, and growth in digital and e-commerce channels as key drivers in a challenging consumer electronics market.
Best Buy Co., Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held BBY at the end of the fourth quarter which was 49 in the previous quarter. While we acknowledge the risk and potential of BBY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BBY and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
