Best Buy: Better Q1 Than Expected Leaves Little Upside, But Near 5% Yield Attractive

Best Buy delivered a strong Q1, beating EPS and revenue estimates, with comparable store sales up 2% and international revenue rising 7%.

I remain cautious on BBY after its recent price surge and see near-term volatility risk from macro headwinds and potential inflationary pressures.

Management is focused on ads and store optimization, aiming for gross profit rate expansion and leveraging partnerships with OpenAI and Alphabet for future growth.

BBY maintains a robust balance sheet, a well-covered ~5% yield, and ongoing buybacks, but flat sales guidance and macro risks temper near-term upside.

Although I haven't stepped foot in a Best Buy ( BBY ) in years, the retailer continues to show resilience despite being down double digits in the past 5 years.

BBY reported their Q1