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Best Buy Co., Inc. Equals The Worst Buy

|Includes:Best Buy Co. (BBY)

Best Buy Co., Inc. (NYSE:BBY) is hovering near its 52 week highs. In the last year, the stock has soared almost 300%. Let me ask you a question, if your favorite TV had its price increased by 300%, would you rush out and buy it? The answer is no. We buy things on sale, not jacked up.

In that same regard, the price of Best Buy's stock is way too pricey to even consider. Especially in light of the recent negative reports on consumer spending and retail sales. On a technical level, this stock is even uglier. Not only is it beyond extended, the stock has filled a major gap from 2010. The key break point on BBY is a close below $41.75. Should that happen, this stock should dive lower to the $36.00 level.

Gareth Soloway

Stocks: BBY