[subject] + 最好 + [verb phrase]
最好 + [subject] + [verb phrase]
[subject] + 最好 + 别 / 不要 + [verb phrase]
最好 before a verb phrase means "it's best to" or "you'd better". It gives advice or a mild warning, and it stands after the subject or, for a little more stress, before it.
The negative is 最好别 or 最好不要: "you'd better not".
Before 的 and a noun, 最好 is the superlative of 好: 最好的朋友 "best friend". The advice 最好 is always followed by a verb phrase.
最好 gives advice about what hasn't happened. For "you should have" about the past, use 应该.
还是 is the other "had better": it says the speaker weighed options and chose, where 最好 just advises.