|Bid||73.40 x 900|
|Ask||73.98 x 1100|
|Day's Range||73.08 - 74.48|
|52 Week Range||47.72 - 84.37|
|Beta (3Y Monthly)||1.44|
|PE Ratio (TTM)||14.19|
|Earnings Date||May 23, 2019|
|Forward Dividend & Yield||2.00 (2.81%)|
|1y Target Est||77.32|
Shares of Best Buy (NYSE:BBY) have been on fire in 2019, rising more than 40% year-to-date amid a flurry of operational improvements. Namely, economic and financial market conditions have substantially improved in the new year. Those improvements, coupled with a strong holiday quarter earnings report, provided a strong lift to Best Buy stock in 2019.Source: Best BuyBut the stock is still well off its all-time highs. The valuation remains cheap at 13-times forward earnings. Finally, the fundamentals remain healthy, with a strong U.S. consumer base and an economy becoming more tech-heavy. In other words, this rally in Best Buy stock isn't over just yet.My numbers suggest that this rally won't top off until $80, and that bullishness should remain throughout 2019. As such, I'm not selling just yet. BBY stock has a visible runway for further upside over the next few months and quarters.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Best Buy Is A Long-Term WinnerOwing to its robust exposure to and leadership position in the still rapidly expanding consumer-technology market, Best Buy projects as a winning business for the next several years. * 10 Stocks to Sell Before They Give Back 2019 Gains The logic is fairly straightforward. Technology is advancing rapidly, with products integrating higher levels of intelligence. It started with smartphones. Now, we have smart tablets, smartwatches, smart TVs, and smart appliances. Tomorrow, we will have smart clothing, smart cars…indeed, almost anything you can think of.In other words, the entire consumer space is becoming "smart." This translates to every consumer product gradually transitioning into consumer technology products. And where do tech-savvy consumers go? Best Buy, both because that's the niche that BBY services, and because they have the personnel which can help consumers become acclimated to fresh innovations. Therefore, as the consumer-technology space continues to expand over the next several years, Best Buy will become an increasingly important player in the broader retail market.To be sure, this doesn't mean Best Buy projects as a big grower like Amazon (NASDAQ:AMZN). Quite the opposite, in fact. Given its maxed-out store footprint and business maturity, Best Buy will grow slower in coming years. But that deceleration will remain steady and stable, mostly because it's supported by the aforementioned secular tailwinds in consumer-tech expansion. Margins should likewise remain stable against the backdrop of healthy demand.All in all, then, signs point to Best Buy as a healthy, stable, and winning business over the long haul. Ultimately, that implies good upside for BBY stock. Near Term Upside Looks GoodThe bull thesis in Best Buy stock breaks down into two parts. First, in the long term, stable growth on top of a cheap valuation will produce healthy returns. Second, in the near term, healthy economic conditions and broad consumer-tech expansion will drive operational out-performance.On the first point, Best Buy stock is very cheap. It trades at just 13-times forward earnings, versus a market-average forward multiple north of 16. At that low of a multiple, slow but consistent growth should be enough to produce healthy returns for shareholders. Assuming some combination of 0% to 2% revenue growth, margin stabilization, and buybacks, earnings should grow at mid-single digit rate for the foreseeable future.That's why I think $7.50 in EPS is achievable by fiscal 2025. Based on a historically average 14 forward multiple, that implies a reasonable fiscal 2024 price target of $105. Discounted back by 7% per year (three points below the 10% discount rate to account for the yield), that equates to a fiscal 2020 price target of roughly $80.On the second point, economic improvements imply that Best Buy will out-perform in 2019. Specifically, in the U.S., the unemployment rate is hovering near record lows, while borrowing rates are also deflated. In addition, wages are rising by the most they've risen in a long time. Plus, the stock market is hitting record highs, and consumer confidence has come roaring back after a late 2018 lull.Those improvements indicate that we have an American consumer today who is ready to spend big on relevant tech. That willingness should ultimately lead to Best Buy putting up good numbers throughout 2019 as new consumer-tech products launch throughout the year. Bottom Line on BBY StockBest Buy stock has rallied in a big way so far in 2019. Better yet, shares will stay in rally mode for the foreseeable future, thanks to a strong economic backdrop, continued tailwinds in the consumer tech space, and a favorable valuation. All things considered, the retailer has visible upside to $80 within the next several quarters.As of this writing, Luke Lango was long BBY and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises Compare Brokers The post Why Best Buy Stock Can Run to $80 appeared first on InvestorPlace.
Best Buy stock got an upgrade from Jefferies because of its plans to offer more services, in addition to being a retailer.
It's why, according to Research and Markets, the global managed service market could see a CAGR of 11.23% over the next three years thanks to new technological advancements. As we begin to see further growth, it's creating a wealth of opportunity for companies such as Nerds on Site Inc. (CSE: NERD)(OTCQB: NOSUF), Best Buy Co. Inc. (NYSE: BBY), and Accenture PLC (NYSE: ACN). Mobile IT solutions company, Nerds on Site Inc. (NERD)(NOSUF) is quickly expanding in Florida, launching its signature NERD parade in Punta Gorda, Port Charlotte, North PortFlorida.
Well like Costco (COST) there are other prominent retailers that are riding on the wave of favorable consumer environment and strategic endeavors.
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company.
I've long found that the combination of growing dividends along with simultaneous share buybacks can indeed be a powerful one. Theoretically, neither action makes sense. Even at the fairly low current tax rates, dividends may be viewed as a waste of capital.
With earnings season already underway, traders are starting to get a feel of how well companies fared over the first few months of 2019. Despite anxiety over whether this season’s revenue numbers would fall short of previous quarters, upbeat reports from Dow components Johnson & Johnson (NYSE: JNJ) and JP Morgan Chase & Co. (NYSE: JPM) have kept major averages largely buoyant in the initial weeks of the season. Earnings season is a time when many active traders utilize options strategies, as the large potential overnight volatility presents a good opportunity for short-term trades on both sides of the market.
Give credit where credit is due. Long-struggling GoPro (NASDAQ:GPRO) is making progress. And it's reflected in GPRO stock, which now has risen over 50% so far this year.Source: Shutterstock Of course, the problem is that GoPro stock closed 2018 only a few pennies off an all-time low. The big rally has only returned GPRO to where it traded at the beginning of November, ahead of yet another disappointing earnings report.That said, Q4 earnings -- and 2019 guidance -- were much stronger. GoPro is tracking toward profitability in 2019, if only on an adjusted basis. There is some good news here in a stock that I've long viewed with skepticism.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe question after the rally is whether that good news is already priced in. For the most part, it is. GoPro still has real questions -- and back above $6, GPRO stock simply doesn't look quite compelling enough. Case for GoPro StockAdmittedly, the outlook is brighter for GoPro. Q4 numbers were strong, with sales up over 12%, capping off a year when revenue dropped just 2.7%. Cost-cutting -- non-GAAP operating expenses dropped 17% in 2018, according to the Q4 call -- helped margins, allowing GoPro to revert to profitability on an adjusted EBITDA basis. * 7 High-Risk Stocks With Big Potential Rewards In 2019, revenue growth is expected to return, with the company guiding for a 5-8% increase in sales. And GoPro expects to move to non-GAAP net profitability, with EPS guidance of 20-40 cents. The big driver is an enormous expansion in adjusted gross margin, which is expected to rise from 32.8% in 2018 to 35-37% in 2019.That gross margin expansion, in particular, gives added reason for hope. It shows that GoPro is able to sell more cameras at higher prices and rely less on discounting to move units. GoPro has had some issues over the years overbuilding inventory, and then clearing that product through outlets like Best Buy (NYSE:BBY) at unattractive prices. At least at the moment, management doesn't expect a repeat in 2019. The Subscription BusinessThe other trend boosting margins is the company's growing subscription business. Those revenues have higher margins and are growing nicely, with paid subscriptions rising 50%+ last year.So there is a bull case here -- which truthfully hasn't always been the case. Revenue is growing, both domestically and overseas. On the Q4 call, CEO Nicholas Woodman cited improving market share figures in Europe and Asia. Both gross margin and operating margin - the latter thanks to better spending controls - should expand.And with GoPro now targeting profitability, valuation suddenly doesn't look so extreme. The midpoint of 2019 EPS guidance suggests a P/E multiple of 21x. That's not stunningly cheap, to be sure. But if GoPro is building a base for continued earnings growth, it's cheap enough. The Concerns with GPRO StockThat said, the big concern here is whether earnings growth is going to continue. Assuming the company meets 2019 guidance, operations will have improved significantly between 2017 and 2020.But what happens from there? Gross margin expansion is likely limited; CFO Brian McGee said long-term gross margin targets were 36-39%, pretty much in line with 2019 expectations. The company can't bring down opex every year without skimping on needed R&D and marketing spend. There's room for savings on interest expense if GoPro can pay its debt off a few years from now, but after-tax even that represents something like 10-12 cents in annual earnings per share. * 7 Stocks to Buy for Spring Season Growth From a growth standpoint, the easy work has been done. Post-2019 -- again, assuming guidance has been met -- GoPro simply has to grow sales. And the worry there is that the company really hasn't shown a consistent ability to do so. In fact, few hardware companies have.IP camera manufacturer Arlo Technologies (NYSE:ARLO) has plunged after its spin-off from NETGEAR (NASDAQ:NTGR). GoPro often is compared to Fitbit (NYSE:FIT), which went public around the same time, similarly soared, and then collapsed.Consumer hardware simply is a hugely difficult business. Sales depend essentially on the replacement cycle. That seems doubly true for GoPro, whose market is limited. 'Action cameras' simply have a fixed demographic. Consumers will age into that demographic -- and also age out. GPRO as a Revenue StoryBut at 20x+ earnings, with margin improvement opportunities limited, GPRO stock now becomes a revenue story. And that seems dicey. GoPro hasn't shown sales growth: 2019 revenue guidance suggests sales will be ~12% lower than they were five years earlier. Market growth is unlikely. It already has 90%+ share of Western markets, which means market share gains are limited as well.With profitability and some growth, GPRO likely can grind out some upside. A sale could drive returns - but there's no obvious acquirer, or any sign that Woodman (also the founder and controlling shareholder) is interested in being taken over. As a standalone, for real returns in GPRO stock, sales need to grow for several years to come. It's possible -- and it looks more possible now that it did a year ago or three years ago.'Possible' isn't enough to make GoPro stock compelling, however. Gains from here still requires consistent revenue growth. And for those investors who have followed the company since its IPO, consistency has been the one thing the company has never been able to provide.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post GoPro Is Making Progress, But GPRO Stock Still Doesn't Look Cheap appeared first on InvestorPlace.
Chairman & CEO of Best Buy Co Inc (NYSE:BBY) Hubert Joly sold 171,711 shares of BBY on 04/17/2019 at an average price of $73.68 a share.
When Hubert Joly became CEO of Best Buy (NYSE:BBY) seven years, ago it did look like he could be committing career suicide. Best Buy stock had fallen by more than half in a couple years and appeared to be at an existential moment.Source: Best BuyThe buzz was that BBY would inevitably be another victim of Amazon.com's (NASDAQ:AMZN) relentless e-commerce machine. The company's margins were slipping and so were its comparable-store sales. * 5 Dividend Stocks Perfect for Retirees But Joly was upbeat and ready for the challenge. In the press release announcing his appointment, he said: "Building on the Company's strengths and ongoing work, I believe Best Buy has the capacity to write an exciting new chapter in its history. I sincerely look forward to writing this chapter with the Best Buy team and putting in place the short-term and medium-term actions that will help ensure its success."InvestorPlace - Stock Market News, Stock Advice & Trading TipsWell, Best Buy stock and BBY did extremely well during Joly's time as CEO. During his tenure, BBY stock has gone from $18 to $74.On Apr. 15, BBY announced that he would step down as CEO on Jun 1. But he will remain with the company as its executive chairman.Taking his place as CEO will be the current CFO, Corie Barry, who has been with BBY since 1999. An accountant by training, she also has served as the interim chief of the company's services business and is on the board of Domino's Pizza (NYSE:DPZ). But more importantly, she has had the advantage of working with Joly, so there will be continuity after the transition. Best Buy Stock and The Company's TransformationJoly has certainly left his imprint on BBY. Not surprisingly, a key part of his strategy was aggressive cost-cutting. In all, more than $1.4 billion in savings were realized during his tenure.But in the meantime, Joly has been savvy in finding ways to rethink the core business. To deal with the Amazon threat, he has made BBY's prices competitive with those of AMZN . He also focused on effectively utilizing the company's brick-and-mortar footprint, which includes over 1,100 locations in the US, Canada and Mexico.For example, according to the research from Jefferies, the stores are essentially warehouses that are used to fulfill about 40% of online sales, helping to create a true omnichannel platform.Yet perhaps the most important part of BBY's strategy has been its focus on services, which is critical because technologies have gotten more sophisticated. But then again, services also can provide recurring revenues.Some of the company's recent service-oriented initiatives include: * Total Tech Support: Unlimited support from the Geek Squad, which includes over one million employees. * In-Home Advisor provides recommendations and personalized plans for such things as Wi-Fi, appliances, home theaters , etc. The service is free. * GreatCall: Best Buy acquired this business for $800 million in cash. GreatCall offers a variety of simple mobile devices - such as phones and wearables -- that are targeted at seniors. The owners of the systems have 24/7 access to board-certified doctors and nurses. The Bottom Line on Best Buy StockBest Buy's growth has been impressive. Consider that the company has posted positive comparable sales for five consecutive years.And going forward, there are several important catalysts, such as the emergence of 5G, that should enable the momentum of Best Buy stock to continue. 5G is likely to spawn many new innovations.Finally, Best Buy stock is trading at a reasonable valuation, with a forward price-earnings multiple of 12. Moreover, the dividend yield of BBY stock is a decent 2.81%. So all in all, it does look like the bull case on Best Buy stock is still very well intact.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Why the Outlook of Best Buy Stock Is Still Upbeat appeared first on InvestorPlace.
Tractor Supply (TSCO) gains from its robust store-growth and omni-channel efforts. However, higher costs are weighing on margins, which is a concern.
As we begin to see further growth, it's creating a wealth of opportunity for companies such as Nerds on Site Inc. (CSE: NERD)(OTCQB: NOSUF), Best Buy Co. Inc. (NYSE: BBY), and Cognizant Technology Solutions Corp. (NASDAQ: CTSH). Mobile IT solutions company, Nerds on Site Inc. (NERD)(NOSUF) for example just expanded its mobile fleet by 133% in the 3 months since the Company's IPO from 15 to 35. "With such a rapid increase in NerdMobiles and number of Nerds, we are very excited and anticipate, based on experience, an uptick in Nerd applications, which will accelerate revenue growth in these hot new markets for us in the US," said Charlie Regan, CEO.
Best Buy is selling the $299.99 TytoHome kit on its website and in 10 Best Buy stores throughout Minnesota.
Best Buy Co. Inc. will soon have a new CEO after announcing this week that Chief Financial Officer Corie Barry will step into the role this June. The next task: Finding an executive to fill Barry's job.
Best Buy is replacing an "outstanding" CEO in Joly with Barry who has proven herself to be a "talented executive," Gutman said in a research report. Joly succeeded in leading Best Buy's transformation to become a "premier and highly relevant" retailer and Barry certainly played a role in the transformation over the years.
Best Buy’s CEO Transition: Corie Barry to Succeed Hubert Joly(Continued from Prior Part)Recent performance Best Buy (BBY) announced its CEO succession plan on April 15. Hubert Joly will relinquish his role as the CEO of the company, effective as
Some investors may be concerned after news that Best Buy’s CEO Hubert Joly is stepping down, but analysts are upbeat about his successor, Corie Barry.
Best Buy’s CEO Transition: Corie Barry to Succeed Hubert JolyCEO transition planConsumer electronics retailer Best Buy (BBY) announced on April 15 that Corie Barry, the company’s chief financial and strategic transformation officer, will succeed
Corie Barry has been named as the Best Buy (NYSE:BBY) CEO.She will replace outgoing CEO Hubert Joly. Here are eight things to know about her: * Barry is the current CFO and she will have the role of helping continue Best Buy's forward momentum that it experienced under Joly. * She has been with Best Buy for 20 years, also serving as the brand's chief strategic transformation officer, while being a key part of its executive team that's aided the company in its revamping process. * Barry will take over the role of CEO on June 11 of this year. Meanwhile, Joly will remain as the executive chairman of the brand, advising Barry on a number of matters, including strategy and mergers and acquisitions. * The reinvention process that both Barry and Joly have been involved in has been geared towards offering customers more technical support, as well as in-home advisors for installations that may not be so simple. * This has helped Best Buy become less reliant on new product releases that customers can get on Amazon anyways. The company has also made great strides on the e-commerce side of things. * Barry's efforts have helped the company's market cap reach nearly $20 billion, while announcing in February the company's eighth straight quarter of comparable sales growth. * Since Barry joined the brand in 1999, she has had multiple roles with the retail chain in the financial and operational side of things. * She is also on Domino's Pizza board.BBY stock is down 0.1% on Monday.InvestorPlace - Stock Market News, Stock Advice & Trading Tips More From InvestorPlace * 7 Marijuana Companies: Which Pot Stocks Should You Buy? * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Corie Barry: 8 Things to Know About the New Best Buy CEO appeared first on InvestorPlace.
Barry, who joined Best Buy in 1999 and went on to become its finance chief in 2016, will become the company's fifth CEO when she takes over from Hubert Joly, who will step aside to become executive chairman in June. Barry along with Joly, a restructuring expert, turned around the struggling retailer that had been dogged by falling same-store sales and a takeover battle with founder Richard Schulze.
There's a big change at the top of Best Buy with a new CEO taking charge at the retailer. Hubert Joly is out and Corie Barry is in. Here's Yahoo Finance's editor at large Brian Sozzi.