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.
The RSI Oscillator for BBY moved out of oversold territory on November 01, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 32 similar instances when the indicator left oversold territory. In of the 32 cases the stock moved higher. This puts the odds of a move higher at .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 60 cases where BBY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 344 cases, the price rose further within the following month. The odds of a continued upward trend are .
BBY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on October 10, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BBY as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
BBY moved below its 50-day moving average on October 21, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BBY crossed bearishly below the 50-day moving average on October 25, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for BBY entered a downward trend on November 11, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 (5.760) is normal, around the industry mean (12.064). P/E Ratio (14.373) is within average values for comparable stocks, (36.044). Projected Growth (PEG Ratio) (1.507) is also within normal values, averaging (2.650). Dividend Yield (0.045) settles around the average of (0.034) among similar stocks. P/S Ratio (0.411) is also within normal values, averaging (18.679).
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 outstanding 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a retailer of consumer electronics, entertainment software and appliances
Industry SpecialtyStores