雅虎香港財經 If You Invested $1000 in Best Buy a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Best Buy (BBY) ten years ago? It may not have been easy to hold on to BBY for all that time, but if you did, how much would your investment be worth today?
Best Buy's Business In-Depth
With that in mind, let's take a look at Best Buy's main business drivers.
Incorporated in 1966 and headquartered in Richfield, MN, Best Buy Company Inc. (BBY) is a multinational specialty retailer of consumer electronics, home office products, entertainment software, communication, food preparation, wellness, health, security, appliances and related services. The company retails technology products in the United States and Canada.
Best Buy operates through two business segments. The Domestic Segment (92.8% of second quarter of fiscal 2025 total revenues) is comprised of the operations, including Best Buy Health business, in all states, districts and territories of the United States under various brand names Best Buy, Best Buy Business, Best Buy Express, Best Buy Health, CST, Geek Squad, GreatCall, Lively, Magnolia and Pacific Kitchen and Home. The International Segment (7.2% of second quarter of fiscal 2025 total revenues) comprised operations in Canada under the brand names Best Buy, Best Buy Express, Best Buy Mobile and Geek Squad.
Domestic and International segments have offerings in six revenue categories.
Computing and Mobile Phones - computing (including desktops, notebooks and peripherals), mobile phones (including related mobile network carrier commissions), networking, tablets (including e-readers) and wearables (including smartwatches); Consumer Electronics- digital imaging, health and fitness, home theater, portable audio and smart home; Appliances - including dishwashers, laundry, ovens, refrigerators, blenders, coffee makers and vacuums; Entertainment - drones, gaming, movies, music, toys, virtual reality and other software; Services- consultation, delivery, design, health-related services, installation, memberships, repair, set-up, technical support and warranty-related services; and Other- beverages, snacks, sundry items and other product offerings.
(Notes: Zacks identifies fiscal years by the month in which the fiscal year ends, while BBY identifies its fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by BBY, will refer to this same fiscal year as being the year before the same year, as identified by Zacks.)
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Best Buy ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in September 2014 would be worth $2,833.81, or a 183.38% gain, as of September 19, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 179.33% and gold's return of 101.14% over the same time frame.
Looking ahead, analysts are expecting more upside for BBY.
Best Buy demonstrates solid performance in Q2 2025, with 6% growth in computing and tablet sales driven by consumer demand for technology upgrades. The company effectively manages costs, reducing SG&A expenses and improving its operating margin to 4.1%, surpassing expectations. We expect adjusted operating margin to expand 10 basis points year over year to 4.2% in fiscal 2024. The company’s well-executed omnichannel strategy, which integrates seamless online and in-store experiences with efficient logistics, continues to enhance customer satisfaction. Best Buy's membership programs also contribute to profitability, with increased customer engagement. However, the company faces some challenges, including declining revenues in certain categories such as home theater and appliances, as well as weakness in the international segment.
Over the past four weeks, shares have rallied 13.82%, and there have been 11 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
