Best Buy: A Solid Buy As The Recovery Continues
Helix Investment Research
Helix Investment Research
Best Buy Continues To Show Progress
Best Buy's Dip Is A Great Opportunity
Saj Karsan • 72 Comments
Saj Karsan • 72 Comments
Today, 2:01 PM
Fri, Jul. 22, 9:38 AM
- The Dallas Morning News has pictures of what the new appliances section at J.C. Penney (JCP) looks like at eight stores around the Dallas-Ft. Worth area.
- J.C. Penney is adding appliance sections to 500 stores by this fall in an effort to turbocharge home department sales. Early tests of the initiative have been positive.
- Appliance selling fell by the wayside during the Ron Johnson era when the department store chain veered into a strategy to divides its stores by brands and dial back promotions.
- Sector watch: Sears (NASDAQ:SHLD) and Kmart stores could feel an impact from the appliances bet by JCP, Best Buy (NYSE:BBY) is also increasingly active in the appliances category.
Sat, Jul. 9, 11:03 AM
- Amazon (NASDAQ:AMZN) is gearing up for this year's Prime Day with marketing efforts running at full throttle.
- The event scheduled for July 12 will see Prime members get a crack on deals on over 100,000 items. The company is promising a more engaging assortment this year after taking some criticism a year ago.
- Last year, Amazon pulled in about $375M to $400M in revenue on Prime Day. MKM Partners estimates that mark could be doubled this year.
- Analysis from JPMorgan suggests that Amazon Prime Day pulls forward some retail sales during a typically quiet period. The shopping bonanza and boost to Prime stickiness could be a headwind for Target (NYSE:TGT), Wal-Mart (NYSE:WMT), and Best Buy (NYSE:BBY). This year's event will also serve as a critical test for the Seattle e-commerce giant on the fulfillment front.
- Amazon carved out a new all-time high of $746.10 on Friday. Shares are now up 70% over the last year which has led to no shortage of analysis and debate from Seeking Alpha contributors on the AMZN trade.
Fri, Jun. 17, 10:03 AM
- Gap (GPS +3.7%) is back over $20 for the first time in over a month with some improved sentiment bubbling up over the retail sector.
- The retailer's +4.5% dividend yield may be luring in some buyers
- Other retail movers ahead of broad averages in early action include Nordstrom (JWN +2.3%), Tailored Brands (TLRD +3.6%), Pier 1 Imports (PIR +3.6%), Best Buy (BBY +2.8%), and DSW (DSW +2.5%). Perhaps it's coincidence, but all those companies boast a dividend yield of over 3%.
Thu, Jun. 16, 7:52 AM| Thu, Jun. 16, 7:52 AM | 68 Comments
Wed, Jun. 15, 8:23 AM| Wed, Jun. 15, 8:23 AM
Mon, Jun. 6, 3:50 PM| Mon, Jun. 6, 3:50 PM | 1 Comment
Wed, May 25, 12:29 PM
- Deutsche Bank downgrades Best Buy (BBY +4%) to Hold from Buy and sets a price target of $32 (10X 2017 EPS estimate).
- Analyst Mike Baker bases his caution on three factors: "(1) a leadership transition to a likely well qualified but less proven executive in a key position, (2) a dependence on back half industry sales improvements that may not materialize, and (3) potentially less cost cutting ahead to reinvest in competitiveness."
- Baker ranks #3,202 out of 9,079 analysts ranked in TipRanks.com
Wed, May 25, 8:07 AM
Tue, May 24, 10:29 AM
- Best Buy (NYSE:BBY) talked up the company's Q1 performance during today's earnings call which included a farewell to outgoing CFO Sharon McCollam.
- A highlight from the quarter included a strong 24% gain in online sales which topped the pace of Staples, Wal-Mart, and Target for roughly overlapping periods. The strong performance in e-commerce shows that some of the company's key investments are paying off.
- Another talking point was the 14% gain in appliances revenue which helped to offset continued weakness with TV prices (-30% Y/Y), videogames, and mobile phones.
- Best Buy wasn't able to lift full-year guidance due to the relatively small contribution Q1 makes to the annual bottom line.
- Shares of BBY are down 7.09% early. A downgrade from Citi to Neutral from Buy is adding to the negative sentiment.
- Previously: Best Buy lower after guidance disappoints (May 24)
Tue, May 24, 7:21 AM
- Best Buy (NYSE:BBY) keeps its full-year guidance intact, despite FQ1 results that were ahead of estimates.
- International sales declined 8.11% to $614M. Sales were down 1.2% on a constant currency basis. International gross profit came in at 25.9% of sales vs. 21.6% a year ago.
- Domestic segment revenue was flat at $7.829B. Domestic comparable sales fell 0.1%./ Domestic online sales were up 23.9%.
- Consolidated gross profit rate +170 bps 25.4%. Consolidated operating income +340 bps to 4.4%. SG&A expense rate +10 bps to 20.7%.
- Guidance: Best Buy expects FQ2 EPS of $0.38-$0.42 vs. $0.50 consensus.
- The company announces that CFO Sharon McCollam will step down from her position in June. She will stay with the company in an advisory role. Corie Barry will take over the CFO spot after serving at Best Buy as the chief strategic growth officer.
- Previously: Best Buy beats by $0.09 (May 24)
- BBY -4.94% premarket to $31.36.
Tue, May 24, 7:03 AM
Mon, May 23, 5:30 PM
Wed, May 18, 10:08 AM
- Retail stocks are lower than broad market averages after Target (TGT -9.3%) sets a gloomy tone on U.S. consumer spending. There was a sense of bewilderment from Target in its release and earnings call commentary over the slowdown in sales post-Easter.
- Wal-Mart is down an even 3% to reach a multi-month low ahead of tomorrow's earnings report.
- Shares of Best Buy (NYSE:BBY) are 3.2% lower after the soft read from Target tilts sentiment. The electronics chain reports earnings on May 24 with analysts expecting revenue of $8.291B and EPS of $0.35 to be disclosed.
- Other chain store stocks reeling after the Target release are Conn's (CONN -0.1%), hhgregg (HGG -2.4%), Sears Holdings (SHLD -3.1%), GameStop (GME -1.6%), Bon-Ton Stores (BONT -2.3%), Dollar Tree (DLTR -2.1%), Big Lots (BIG -2.4%), Dollar General (DG -1.5%), Citi Trends (CTRN -7.4%), and PriceSmart (PSMT -2.9%).
- Previously: Investors edgy over retail stocks after Target disappoints (May 18)
- Previously: Target stung by low traffic trend (May 18)
Fri, May 13, 9:59 AM
- A strong report on retail sales isn't working magic with shares of some of the larger U.S. chain stores.
- Wal-Mart (WMT -2.4%), Target (TGT -2.1%), Macy's (M -1.8%), Best Buy (BBY -1.3%), Walgreen Boots Alliance (WBA -0.4%), TJX Companies (TJX -1.4%), and Costco (COST -0.6%) are some of the names taking their cues from the steady roll of disappointing Q1 earnings reports.
- An intriguing pullout from the retail sales breakdown for April is also a potential factor. Non-store retailers (think Amazon (NASDAQ:AMZN)) increased sales by over 10% Y/Y during the month to easily top all other categories.
- Previously: Retail sales: Consumers spending, just not where they used to (May 13)
Wed, May 11, 10:35 AM
- Electronics store stocks are weaker after the merger between Office Depot (ODP -38.9%) and Staples (SPLS -16.7%) is scuttled.
- Best Buy (BBY -3.4%), Conn's (CONN -6%), and hhgregg (HGG -4.4%) were expected to see at least a marginal impact from a consolidated ODP-SPLS on the view that stores would be closed in certain markets. All three companies still have to spill Q1 numbers which has investors edgy.
- Also trading lower is GameStop (GME -4.1%) which may not sell office supplies but is being caught up in the general anxiety over U.S. consumer spending.
- Previously: Responding to injunction, Office Depot and Staples call off $6.3B deal (May 10)
Best Buy Co., Inc. is a multinational retailer, which provides consumer electronics, home office products, entertainment products, appliances and related services. The company operates through two business segments: Domestic and International. The Domestic segment is comprised of the operations... More
Industry: Electronics Stores
Country: United States
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