Best Buy Co., Inc. (BBY) Buy or Sell Stock Guide
The analysis below may be helpful to you if you have any of the following questions about BBY stock:
- Is BBY a buy or a sell?
- Should I sell or hold BBY stock today?
- Is BBY a good buy / a good investment?
- What are BBY analyst opinions, recommendations, ratings?
Here are BBY stock buy reasons/signals:
1. Best Buy has re-engineered its online sales platform, improving the user experience and adding greater ship-from-store fulfillment capabilities.
2. New television, smartphone, gaming, health/wellness, connected home and virtual reality advances can offer product cycles that drive periodic top-line outperformance.
3. Best Buy has cut more than $1 billion from its annual cost structure and is targeting another $400 million in operating income improvement through improved returns, replacements, and damages processes and operational efficiencies.
4. BBY quarterly revenue growth was 14.00%, higher than the industry and sector average revenue growth (1.55% and 4.93%, respectively).
5. BBY profitability is improving. The YoY profit margin change was 0.85pp.
6. BBY forward dividend yield is 2.34%, higher than the industry (0.76%) and sector (0.60%) forward dividend yields.
Here are BBY stock sell reasons/signals:
1. Online retailers, mass merchants, warehouse clubs, and consumer product OEMs all compete for market share, resulting in aggressive industry price competition and constraining Best Buy's longer-term margin expansion opportunities.
2. Entertainment sales remain sluggish. Replacement categories in Best Buy's stores are often slower-turning, lower-margin products.
3. Warranty sales have historically been a disproportionate contributor to margins. If consumers continue to gravitate to online retailers or vendor direct-sales platforms, declining warranty attachment rates will weigh on margins.
4. BBY stock price ($75.33) is close to the 52-week high ($77.82). Perhaps now is a good time to sell?
5. BBY average analyst price target ($66.26) is below its current price ($75.33).
6. BBY short share of float is 17.04%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.
7. BBY short interest (days to cover the shorts) ratio is 10.33. The stock garners more short interest than the average industry, sector or S&P 500 stock.
What are your thoughts on BBY?
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