|Bid||60.01 x 1100|
|Ask||71.52 x 1400|
|Day's Range||69.72 - 70.62|
|52 Week Range||47.72 - 84.37|
|Beta (3Y Monthly)||1.31|
|PE Ratio (TTM)||13.44|
|Earnings Date||May 22, 2019 - May 28, 2019|
|Forward Dividend & Yield||2.00 (2.85%)|
|1y Target Est||76.64|
Chairman & CEO of Best Buy Co Inc (NYSE:BBY) Hubert Joly sold 139,133 shares of BBY on 03/15/2019 at an average price of $68.53 a share.
A former Sears CEO says that the retailer — once the strongest player in American retail — considered a merger with Minnesota's Best Buy Co. Inc. in 1998, seeking to tap into the electronics chain's growth.
Richard Schulze, who founded the predecessor to the consumer-electronics retailer in 1966, sold $33.2 million in stock.
In late February, Best Buy Co Inc (NYSE: BBY) announced plans for a lease-to-own partnership with Progressive Leasing, a subsidiary of Aaron's, Inc. (NYSE: AAN). Progressive’s success at other retailers suggests the plan could boost Best Buy’s sales by 2-5 percent over the next two to three years, Thomas said.
Target (NYSE:TGT) CEO Brian Cornell was hired by the Minneapolis-based retailer on July 31, 2014. Since then, Target stock is up 46%. Not bad for a company that was thought to be losing the discount war to companies like Walmart (NYSE:WMT) when the former head of PepsiCo's (NASDAQ:PEP) global food business took the job. * 15 Stocks Sitting on Huge Piles of Cash Source: Mike Mozart via Flickr (Modified)InvestorPlace - Stock Market News, Stock Advice & Trading TipsYear to date, Target stock is up 16% through March 11, less than four bucks away from $80, a level it's only seen twice -- August 2015 and August 2018 -- since Cornell's been in the top job. In November 2017, I wondered if Target could hit $80 in 2018. "Can Target deliver an $80 stock in 2018? It's going to be even tougher after the latest hit to its share price," I wrote. "I'll reserve judgment until after Black Friday, but business does appear to be getting stronger. And that's all you can ask for as an investor."In the 16 months since my comments, Target's business has come on like gangbusters, but it's hardly been reflected in its share price. Here's why I think that's about to change. Business Is GoodTarget announced its fourth-quarter results March 5. They were very solid with full-year same-store sales growth of 5.0% -- brick-and-mortar up 3.2%, while digital sales increased 36% on a comparable basis -- and bottom-line adjusted earnings per share of $5.39, 15.1% higher than a year earlier. My InvestorPlace colleague Dana Blankenhorn called Target a good yield stock after it reported earnings, but not a good buy if you're looking for capital gains. I respectfully disagree.Perhaps it was a mirage, but Target's traffic and same-store sales growth in 2018 were the best the company's achieved in over a decade. Furthermore, its adjusted EPS set a record this past fiscal year. Those are hardly the hallmarks of a business in decline. The fact is, if you exclude the extra week in the fourth quarter of 2017, Target's Q4 results were significantly stronger than its reported numbers. On the top line, Target's revenue was $22.7 billion, flat compared to a year earlier. However, if you exclude $1.62 billion, the average of 14 weeks in 2017, the company's sales increased by 7.7%. On the bottom line, EPS increased by 12.5%, significantly better than the reported decrease of 23.5%. Looking ahead, Cornell sees low- to single-digit same-store sales growth in fiscal 2019, with GAAP earnings-per-share growth of at least 6.7%. Both are likely very conservative given the fact that Target's EPS guidance when it reported Q4 2017 last March was between $5.15 and $5.45 a share. With digital sales growing at a blistering pace and traffic better than it's been in a long time, only a severe correction in consumer sentiment is going to slow Target's business. Cannibalization Isn't an IssueTaking a page out of the Best Buy (NYSE:BBY) playbook, Target has optimized its retail footprint to meet growing online sales. Some analysts see this move hampering the retailer's in-store sales. Target doesn't see it quite the same way. "Since 2016, we've made our stores more productive by using them as fulfillment centers. Our fulfillment sales per square foot have grown at an average 67% rate per year. Now, more than $14 a foot as our stores increasingly support our digital business," COO John Mulligan said during Target's conference call. "At the same time, our in-store sales per square foot have grown at a 4% rate per year, which means our Target stores can support incremental growth from Target.com without hurting in-store sales."Investors have seen firsthand how Best Buy has been able to fend off Amazon (NASDAQ:AMZN) by providing consumers an omnichannel shopping experience that works. Target's merely doing the same thing. And the fourth-quarter numbers bear that out. Target's using its store-as-a-hub strategy to grow faster. Forfeiting a few percentage points -- Q4 2018 gross was margin was 25.7%, 40 basis points lower than a year earlier -- in the name of growth is a good thing. Just ask shareholders who've held TGT stock for more than a few years. The Bottom Line on Target StockOver the past two years, Target's capital expenditures have topped $6 billion, as it continues to invest in its business. Take out the impact of the Tax Act and Target's return on invested capital increased by 100 basis points in fiscal 2018 to 14.6%. Not everything's perfect about Target's business. It continues to struggle with its grocery store business. It's not so much that it isn't growing sales -- its food and beverage business has increased for six consecutive quarters -- but it doesn't have a coordinated strategy to take its grocery game to the next level. I believe Brian Cornell and the rest of the Target team are on top of the situation. In 2-3 years, investors won't recognize the company's grocery business. * 10 Dividend Stock Winners Under $75, I'd be a buyer of Target. Under $70, I'd back up the truck. As of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post Target Continues to Hit the Bullseye appeared first on InvestorPlace.
U.S. equities bounce back on Monday despite all the drama surrounding Boeing (NYSE:BA) as it faces trouble with its 737 MAX airliner after a series of two fatal crashes within five months. There were no survivors from either. And the circumstances of the tragedies look similar.But outside of that, the market seems ready to rally after the Dow Jones Industrial Average tested its 200-day moving average last week. Federal Reserve Board Chair Jerome Powell was on his best behavior in a recent 60 Minutes interview, continuing the dovish vibes. GDP growth has been solid. And no news seems to be good news concerning ongoing U.S.-China trade talks. * 7 Dark Horse Stocks That Deserve Your Attention in 2019 As a result, a number of consumer-oriented stocks are pushing higher. Here are four to watch:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (AAPL) Click to Enlarge Apple (NASDAQ:AAPL) shares are pushing up and out of a three-month consolidation range, heading for a test of resistance near its 200-day moving average. This marks a rise of more than 25% off of the early January lows. Anticipation is building ahead of an expected unveiling of an over-the-top streaming service to compete with Netflix (NASDAQ:NFLX).The company will next report results on April 30 after the close. Analysts are looking for earnings of $2.39 per share on revenues of $7.6 billion. When the company last reported on Jan. 29, earnings of $4.18 per share beat estimates by a penny despite a 4.5% drop in revenue (as iPhone sales slowed). JC Penney (JCP) Click to EnlargeTurnaround retailer JC Penney (NYSE:JCP) is enjoying a surge of buying interest, pushing shares up and over their 200-day moving average for the first time since a short-lived excursion back in early 2018.The last sustained move above this level was way back in 2016 as the company has been beleaguered by years of management turnover and competing strategic visions.But a focus on core merchandising -- and an exit from the furniture and appliance businesses -- is creating new momentum. * 7 Tech Stocks That Pay Dividends The company will next report results on May 30 before the bell. Analysts are looking for a loss of 38 cents per share on revenues of $2.49 billion. When the company last reported on February 28, earnings of 18 cents per share matched estimates on a 9.5% drop in revenues. Best Buy (BBY) Click to Enlarge Shares of Best Buy (NYSE:BBY) are holding fast above its 200-day moving average, capping a 40%-plus rally off of its late December lows. The stock has enjoyed a number of analyst upgrades lately, including from Telsey Advisory Group who raised their price target to $74 on confidence in solid execution, market share gains, and traction in its services offerings.The company will next report results on May 29 before the bell. Analysts are looking for earnings of 86 cents per share on revenues of $9.1 billion. When the company last reported on February 27, earnings of $2.72 beat estimates by 14 cents on a 3.7% drop in revenues. Stitch Fix (SFIX) Click to Enlarge Shares of Stitch Fix (NASDAQ:SFIX), which sells mail-order fashion boxes powered by a style algorithm, are enjoying an epic short-covering rally of nearly 30% on Tuesday. This pushes prices up and out of an inverse head-and-shoulders reversal pattern going back to October with a break of neckline resistance near its 200-day moving average. * 15 Stocks Sitting on Huge Piles of Cash The move comes after the company reported strong quarterly results overnight. Earnings of 12 cents per share beat estimates by seven cents on a 25% rise in revenues. Forward guidance was raised, as well. Valuations are high, but with 20% top-line growth there is momentum here.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy Under 15x Earnings * 7 Dark Horse Stocks That Deserve Your Attention in 2019 * 5 Disruptive Technologies That Are Moving Too Fast Compare Brokers The post 4 Consumer Stocks Snapping Out of the Doldrums appeared first on InvestorPlace.
Best Buy Co Inc NYSE:BBYView full report here! Summary * Perception of the company's creditworthiness is positive and improving * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is low for BBY with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold BBY had net inflows of $3.15 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator with a strengthening bias over the past 1-month. BBY credit default swap spreads are decreasing and near the lowest level of the last three years, which indicates improvement in the market's perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
For some retailers, 2019 is looking rosy. For others, it's pretty rough. But there are a few different takes on just what separates winners like Target and Best Buy from losers.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Richard Schulze sold more than $35 million in shares of the consumer-electronics retailer. It’s his first stock sale since late 2017.
For a long while, the retail sector has not gotten much respect on Wall Street. This is probably a lingering effect due to the shellacking that retail stocks received from the onset of the phenomena that Amazon (NASDAQ:AMZN) brought down upon them over a decade ago. Brick and mortar retail did have stints of optimism last year where the group came back in favor but only to crash into Christmas right back into five-year pivot support. Target (NYSE:TGT) fared relatively better than the collective. Target stock put in a higher low in December, easily beating the one set in the fall of 2017.Source: Mike Mozart via Flickr (Modified)This is constructive price action from the long-term charts that's better than say Best Buy (NYSE:BBY).Case in point, Monday -- on a day where the equity markets saw panic selling -- TGT closed only down 0.40%. Compare this to the SPDR S&P Retail ETF (NYSEARCA:XRT) that fell 2% on the same day. This was going into the uncertainty of the company's earnings report, which it delivered this morning.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTGT even beat typical high flyers like Salesforce (NYSE:CRM), which fell 4% going into its earnings event.This morning, Target stock is flying high up 4.4% on a strong earnings report. Management beat expectations, especially in holiday comparable sales. This number was in question because of the disastrous December retail report that shook the sector a few weeks ago. Yet, here is another actual result report that contradicts the anomalous number. * 10 Best Stocks to Buy and Hold Forever These days, investors demand that not only companies beat expectations, but also raise forward guidance. TGT did just that and raised its guidance range for the full year of 2019. This propagates an air of confidence that translates into stock buying action on Wall Street.Year-to-date, TGT stock came into the earnings report already up 10%. This is double that of what Walmart (NYSE:WMT) and almost inline with the S&P 500. All this is to say that Target stock has its fans on Wall Street, which means that management is doing things right.Yet most analysts who cover it rate it as a HOLD and therein lies the opportunity. Some of these analysts will have to upgrade Target stock because management sounds like they are executing on a consistent plan.Maybe this is the time to go long a stock that just delivered a beat and raise. The momentum is clear and there is more upside opportunity than downside risk from here. This makes a good base for TGT bulls to work off.Target has rallied in the face of market-wide adversity with the tariff headlines. This is investors voting with their actions. Since they don't ring bells at perfect entry points, risking some money on a bullish bet here is not likely to be a mistake, so it's worth the try.Fundamentally, TGT stock is cheap selling at a price-to-earnings ratio of 13, which is three times cheaper than WMT. Management is addressing the AMZN threat by using their online sales so retain market share. They seem to have embraced the shift in shopping patterns and their plans are working. However, I still remain skeptical that the collective brick-and-mortar online efforts, in general, are not taking back sales but rather merely stopping the bleeding for now. Bottom Line on Target StockThe macroeconomic environment still favors the retail sector, especially in the U.S. We have full employment and consumers still have a strong spending appetite. So the sector is likely to continue strong. If the stock markets rally from here, then TGT is likely to be in the lead pack. Conversely, if the bears succeed in creating another correction, then Target has shown relative strength, so it may hold up better.This morning's pop in TGT almost fills a huge gap from its last earnings report. This came after Target stock collapsed from Nov. 12. So there is a lot more work to do in order to recover all the red candles all the way back to $87 per share.This is a lot of room to cover and there is likely resistance along the way, especially at $80 and $83 per share. I don't like chasing big pops, so I may want to hold out another tick before buying shares on this rally. Sometimes it's best to nibble first, so taking a position in tranches makes the most sense. This way, if it rallies, then I am already in. If it falls, then I will have the opportunity to average into a reasonable position in TGT. * 7 Consumer Staples ETFs to Buy Now Conversely, if TGT stock falls below $71.70 I would expect another test of $67 per share. While this is not a forecast, it is a scenario that lurks below. The rhetoric in the media is that the stock market is long in the tooth here, so a correction may become a self-fulfilling prophecy. I am not of that opinion, but I won't be surprised if we talk ourselves into a small correction here before the next leg up in equities.The bottom line is simple. The Target team is executing well and the results prove it. Those who want to buy a quality retail stock ought to consider it for their portfolio. It has far less froth to shed than a lot of the other competitors.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Big Data Stocks That Deserve a Closer Look * 7 Best Energy Funds to Outperform the Market * 5 Blue-Chip Stocks Ready to Rise Compare Brokers The post Why Target Stock Will Keep Flexing Its Muscle In the Months Ahead appeared first on InvestorPlace.
On its face, Best Buy (NYSE:BBY) looks far too cheap. Best Buy stock trades right at 12x the midpoint of fiscal 2020 (ending January) EPS guidance. Considering Best Buy is growing steadily -- EPS rose 20% in fiscal 2019 -- the multiple assigned BBY stock seems far too low.Source: Best Buy However, I'd say Best Buy stock looks priced about right -- at best. Much of last year's earnings growth came from a lower tax rate. Underlying growth is expected to decelerate this year and that could continue going forward. Cyclical risks are rising, and Best Buy's key suppliers don't necessarily seem all that healthy. The news admittedly isn't terrible. BBY stock hardly seems like a short, and there are worse plays out there, particularly in retail. But there are risks that investors need to monitor. And there are reasons why Best Buy stock looks cheap… because it probably should be cheap. The Case for Best Buy StockThe case for Best Buy stock is relatively simple -- even beyond valuation. Historical performance has been impressive: Best Buy has grown earnings through a combination of underlying growth, share buybacks and a lower tax rate. BBY stock bottomed near $10 in late 2012; six and a half years later, it's returned over 600% including dividends.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Why NOW Is the Time to Buy Gene Therapy Stocks Competition is essentially nil -- at least in terms of brick-and-mortar rivals. Amazon.com (NASDAQ:AMZN) is an obvious threat. But Best Buy has managed through worries about the "showroom effect" - and outlasted former competitors like Circuit City, RadioShack, and hhgregg. Best Buy is basically the last major retailer standing to serve an enormous market.More recently, Best Buy is coming off an impressive earnings report. Adjusted earnings came in well ahead of consensus expectations. Same-store sales growth of 3% was solid in a quarter where several retailers stumbled and capped an impressive full-year comp increase of 4.8%.Best Buy is a good business with limited competition. The company is executing well -- including driving online sales (up over 10% in fiscal 2019). BBY stock is cheap. What can go wrong? The Risks to BBY StockQuite a bit, actually. There are real risks here and real reasons why Best Buy stock receives a basically zero-growth 12x multiple.Near-term growth is decelerating. After 4.8% and 5.6% comp growth the last two years, Best Buy expects just a 0.5%-2.5% increase in fiscal 2020. Operating margins are expected to be flat -- and narrow, at just 4.6%. The midpoint of EPS guidance suggests a little over 4% growth year-over-year.Best Buy could outperform, admittedly. And at 12x earnings, any growth could suggest upside. A 3% dividend yield helps the case as well. But looking forward, there are two key risks here.The first is that Best Buy has a good deal of cyclical exposure. Spending on big-ticket items like televisions and computers slows dramatically when the macro picture weakens. Best Buy itself saw same-store sales decline a total of 2.5% from fiscal 2009 through fiscal 2011 -- even as competitors were vanishing.If and when the economy turns, Best Buy earnings very well could decline -- and the stock would follow. Even renewed fears of a cyclical downturn can hammer BBY stock: note that shares dropped almost 40% just between early October and mid-December. Is Electronics a Good Business?The second, broader concern for BBY is the health of the electronics space. Prices for many Best Buy products keep dropping. Computing and mobile devices drive over half of sales. Neither business looks particularly healthy at the moment.Indeed, it's worth considering Best Buy's biggest suppliers. 56% of inventory purchases in fiscal 2018 (this year's 10-K hasn't been filed yet) came from Apple (NASDAQ:AAPL), Samsung, HP (NYSE:HPQ), Sony (NYSE:SNE) and Lenovo (OTCMKTS:LNVGY).Apple's domestic sales, particularly of the iPhone, are a significant question mark. At the least, it does look like the ever-increasing prices for the iPhone are going to have to moderate, with the company already cutting prices. HP stock just plunged on a revenue miss. Sony's game business -- the most important to Best Buy -- is struggling as well.The long-term trend for key Best Buy categories is for pricing to stay flat at best. With operating margins under 5%, Best Buy earnings don't have much room for pricing compression.In that context, a 12x multiple seems reasonable -- and maybe a touch expensive. Cyclical pressures will show up at some point. Even a cursory look at key suppliers shows that secular pressures already are here. The long-running benefit of dying competition is fading, with only GameStop (NYSE:GME) left to cede sales. * 7 Chinese Stocks to Buy for the 2019 Rebound Clearly, there are risks here for Best Buy stock. From here, those risks suggest that BBY stock could be -- and should be -- even cheaper.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Big Data Stocks That Deserve a Closer Look * 7 Best Energy Funds to Outperform the Market * 5 Blue-Chip Stocks Ready to Rise Compare Brokers The post Best Buy Stock Should Give Back Its Gains appeared first on InvestorPlace.
Best Buy Co., Inc. (NYSE:BBY) has pleased shareholders over the past 10 years, by paying out dividends. The stock currently pays out a dividend yield of 3.0%, and has aRead More...
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company.
NEW YORK, March 05, 2019 -- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors,.
During Friday's Mad Money program, Jim Cramer was bullish on Best Buy Co. In the daily bar chart of BBY, below, we see a mixed technical picture. Prices have rebounded but volume declined in January and February until a recent upside price gap when volume surged.
Best Buy is looking to innovative technologies in a variety of areas — from mobile to health — for growth potential.
Best Buy set a new record for itself, raising $20.8 million over the holiday season to help in the fight against childhood cancer and other life-threatening diseases. When we ask our people to help those in need, everyone shows up,” said Ray Sliva, Best Buy’s senior vice president of retail operations. Funds raised are critical given that families never receive a bill from St. Jude for treatment, travel, housing or food—because all a family should worry about is helping their child live.