• In recent weeks, Best Buy highlighted stronger-than-expected holiday demand, raised its fiscal 2026 comparable sales outlook to a small increase, and prepared to report fourth-quarter results after earlier signaling a mild earnings decline.

• What stands out is how Best Buy’s mix of in-store service, expanding online marketplace, and momentum in computing, gaming, and mobile phones is helping it stay relevant against larger e-commerce rivals.

• Against this backdrop, we’ll examine how Best Buy’s upgraded comparable sales guidance influences its investment narrative for long-term-focused investors.

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To own Best Buy, you have to believe its combination of physical stores, services and an expanding digital marketplace can keep it a preferred destination for big-ticket tech, even as growth stays modest and competition intense. The recent holiday update, with stronger-than-expected demand and upgraded fiscal 2026 comparable sales guidance to a small increase, nudges the short-term narrative in a more constructive direction after a year of weaker margins, one-off charges and a share price that has lagged both the market and specialty retail peers. Near term, the key catalysts now look like execution on computing, gaming and mobile momentum, plus how Q4 results and updated earnings guidance reconcile with that higher comp outlook. The biggest risks remain margin pressure, softer consumer spending and a dividend that is not well covered by current earnings, which could limit flexibility if trends soften again.

However, one financial pressure point could matter more than many income-focused investors expect. Despite retreating, Best Buy’s shares might still be trading above their fair value and there could be some more downside. Discover how much.

Six fair value estimates from the Simply Wall St Community span roughly US$53 to US$144, showing how far apart private investors can be on Best Buy’s potential. Set against the recent upgrade to comparable sales guidance and still-thin profit margins, that spread underlines why it is worth weighing both upside scenarios and the risk that earnings recovery takes longer than hoped.

Explore 6 other fair value estimates on Best Buy – why the stock might be worth 21% less than the current price!

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