Best Buy’s (BBY, $62.59) strategy for damage control
Once embattled electronics retailing giant Best Buy Inc. has been dodging death for some time now, but the question is, for how long?
The company expects to grow same-store sales in 2019 amidst threats from tariff increase and concerns over consumer spending.
For years, Best Buy had watched customers walk its floors and test out products they would then buy online for lower prices, often from Amazon. It is now trying to test options where consumers would return to stores to buy products instead of buying them cheaper from e-commerce sites like Amazon (AMZN).
Under the current CEO, that trend is changing and the company boasts of retaining some of the customers who walked its floors. Unprecedented service, convenience and a proximity with vendors coupled with better employee training have yielded the desired results in the recent times.
That having said, Amazon itself is moving towards brick-and-mortar retail signalled by its recent acquisition of grocer Whole Foods. In the short term, a long list of tariffs could hit Best Buy harder than other retailers, since so much of its inventory is consumer electronics manufactured in Asia.
BBY's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for BBY turned positive on May 19, 2026. Looking at past instances where BBY's MACD turned positive, the stock continued to rise in of 60 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 18, 2026. You may want to consider a long position or call options on BBY as a result. In of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
BBY moved above its 50-day moving average on May 22, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for BBY crossed bullishly above the 50-day moving average on May 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BBY advanced for three days, in of 296 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 169 cases where BBY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for BBY moved out of overbought territory on June 16, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BBY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BBY broke above its upper Bollinger Band on May 26, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.168) is normal, around the industry mean (4.774). P/E Ratio (13.996) is within average values for comparable stocks, (30.126). Projected Growth (PEG Ratio) (1.441) is also within normal values, averaging (1.349). Dividend Yield (0.050) settles around the average of (0.029) among similar stocks. P/S Ratio (0.382) is also within normal values, averaging (1.291).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. BBY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BBY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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General Information
a retailer of consumer electronics, entertainment software and appliances
Industry SpecialtyStores
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