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Checking in with Best Buy Stock Before Earnings

Call traders have been targeting the stock lately

Deputy Editor
Aug 27, 2024 at 3:13 PM
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Retail giant Best Buy Co Inc (NYSE:BBY) will announce its second-quarter earnings report before the open Thursday, Aug. 29. The stock has a fairly strong post-earnings history over the last two years, finishing six of its last eight next-day sessions higher, including a 13.4% pop this past May. 

This time around, Wall Street expects earnings of $1.15 per share on revenue of $9.23 billion, which are both lower than the company's same quarter a year ago. In regard to the shares, the options pits are pricing in a post-earnings move of 10.8%, which is much larger than the 4.9% move the stock has averaged over the past couple years. 

The options pits have been optimistic over the last 10 weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BBY's 50-day call/put volume ratio of 1.39 ranks higher than 85% of readings from the past year. 

Today, BBY was last seen 0.6% lower at $88.39. The stock is fresh off three-straight weekly gains after falling to support at the $78 level amid the global selloff. Year to date, the equity is up 12.9%. 

 

 

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