Best Buy Co., Inc. (NYSE:BBY) reported Q4 and full-year results. The results indicate the Q4 EPS at $2.73 compared to $3.48 in Q4 of the previous year. The annual EPS was recorded at $10.01 compared to $7.91 in the previous year.
The results indicate that though the full-year EPS was higher, the lower Q4 EPS signals a slowdown in the performance of the company. The decline is expected to continue in FY23, with BBY expecting the EPS between $8.85 and $9.15.
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A turnaround to the 2021 performance levels is expected in FY25. Best Buy’s performance captures the impact of e-commerce sales declines as consumption trends return to pre-pandemic behaviors.
BBY set for trend reversal as signaled by RSI and MACD
Technical analysis indicates the share price has stabilized at approximately $100 since December 2021. In the first week of Ukraine’s invasion by Russia, the share price hit a low level of $85.58. The price has since then recovered.
However, the short-term moving averages MA 10 and MA 50 remain below MA 50. MACD analysis indicates trending towards convergence with the signal level for a subsequent upward trend.
The relative strength index at 44.94 just slipped above the average at 40.37, indicating that the share price will likely trend upwards. The company would face resistance at $122. The support level remains at $96.
Summary
BBY reported declining performance with a projected return to EPS above $10 in FY25. Though the short-term prices recorded a decline in the past few weeks, RSI and MACD analysis signal a trend reversal. BBY would face resistance at $122.
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Source: https://invezz.com/news/2022/03/03/best-buy-shows-declining-performance-what-does-this-mean-for-the-share-price/