Ask Matt: Is Best Buy a screaming buy?

Q: Is Best Buy a screaming buy?

A: Best Buy (BBY) is the latest retailer to sound a warning about the future. Investors who bet on the stock will need patience for a turnaround.

The seller of consumer electronics warned revenue at stores open at least a year as of the end of the fiscal fourth quarter fell 1.2% domestically. Analysts are now braced for the company’s revenue in the fiscal fourth quarter to drop 3.8% to $13.7 billion, says S&P Capital IQ. Adjusted profit is expected to fall 6.8%.

2016 is a pivotal year for investors since it’s when the company’s profit growth is expected to return. Investors anticipate adjusted earnings per share to rise 1% to $2.62 a share in 2016. Then in 2017, analysts are calling for adjusted profit growth of nearly 7%. Analysts continue to support the stock, saying it will be worth $36.87 a share in 18 months, which would be nearly 40% higher than Thursday’s close. Shares fell nearly 10% Thursday to roughly $26 a share on the company’s news. But Best Buy is making the difficult transition from physical stores to selling online. The company reported nearly 13% revenue growth from its online shopping business. Best Buy is trading for 11 times its earnings over the past 12 months, which is a discount. But Best Buy remains a speculative play.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.