ValuentumAd

Official PayPal Seal
You are here: Home » » Best Buy’s Rebound Continues

Best Buy’s Rebound Continues

publication date: Dec 5, 2019
View a Printer Friendly version of this page, allowing you to print the page. Send a summary of this page to someone via email.

Image Shown: Best Buy Co Inc has staged an impressive rebound over the past few years. This rebound was aided by significant investments in its digital presence, recognizing the core markets Best Buy wanted to target, and ultimately comparable store sales growth. 

On November 26, Best Buy reported third quarter earnings for its fiscal 2020 (three month period ended November 2, 2019) that beat both top- and bottom-line consensus estimates. Even better, Best Buy raised its guidance for fiscal 2020, largely on the back of stronger than expected same-store sales growth. Best Buy’s update helped send shares of BBY over our fair value estimate of $76 per share, and if this outperformance is sustained, the retailer may march towards the upper end of our fair value range estimate (which currently sits at $95 per share). Shares of BBY yield 2.5% as of this writing, and we like the firm’s dividend growth prospects. However, we caution that Best Buy remains very exposed to the US-China trade war, and we don’t include shares of BBY in our newsletter portfolios in large part due to the downside risks exogenous forces impose.


Subscribe Now to Gain Access!

This page is available to subscribers only. To gain access to members only content (including this research piece), click here to subscribe. With a subscription, you'll have access to all of our premium commentary, equity reports, dividend reports and Best Ideas Newsletter and Dividend Growth Newsletter, as well as receive discounts on all of our modeling tools and products. Financial advisers and institutional investors have even more to choose from!

Click to Learn More about Valuentum

If you are already a subscriber, please login.

If you believe you should be able to view this area then please contact us and we will try to rectify this issue as soon as possible.


To gain access to the members only content, click here to subscribe. You will be given immediate access to premium content on the site.