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 $77.63 as of June 24th. BBY’s trailing and forward P/E were 14.38 and 11.85 respectively according to Yahoo Finance.
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Best Buy Co., Inc. (BBY) is a leading consumer electronics retailer that has successfully transformed itself from a traditional brick-and-mortar chain into a diversified omnichannel platform with growing exposure to higher-margin revenue streams. Operating more than 1,100 stores across the United States and Canada alongside an expanding digital presence, the company sells consumer electronics, computing products, mobile devices, appliances, entertainment products, and services.
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While many investors continue to view Best Buy primarily as a cyclical electronics retailer, the company has been steadily building new profit engines through Best Buy Ads and its third-party Marketplace platform, creating a more resilient and profitable business model. This transformation is beginning to show in the financial results, with first-quarter fiscal 2027 revenue increasing 1.9% year over year to $8.9 billion and comparable sales returning to growth at 2.0%.
Operating income expanded significantly to $370 million from $219 million a year earlier, while adjusted earnings per share increased to $1.28, demonstrating the benefits of improved operating leverage and stronger execution. The company reaffirmed its fiscal 2027 adjusted EPS guidance of $6.30 to $6.60, reflecting confidence in continued momentum. Best Buy Ads is projected to approach $1 billion in collections during fiscal 2027, while Marketplace gross merchandise volume is expected to exceed $1.2 billion, providing meaningful growth opportunities that carry substantially higher margins than traditional product sales.
Shareholders are also rewarded through a 5.08% dividend yield, a $3.84 annual dividend, and an impressive 22-year streak of dividend increases. With positive comparable sales trends, expanding profitability, scalable high-margin businesses, and a strong capital return program, Best Buy appears well positioned to generate attractive long-term shareholder returns while continuing to evolve beyond its traditional retail roots.
Previously, we covered a bullish thesis on Costco Wholesale Corporation (COST) by FluentInQuality in March 2025, which highlighted the company’s membership-driven business model, cost leadership, customer loyalty, and recurring fee income that supports long-term growth. COST’s stock price has depreciated by approximately 8.19% since our coverage. Serhio MaxDividends shares a similar view but emphasizes on Best Buy’s omnichannel transformation, high-margin Ads and Marketplace businesses, and growing dividend profile.
Best Buy Co., Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held BBY at the end of the first 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.
