Best Buy Takes a Hit On Apple Buzz

BBY just saw its worst quarter since 2014

by Lillian Currens

Published on Jan 3, 2019 at 9:57 AM

Best Buy Co Inc (NYSE:BBY) is just one of many companies caught in Apple's (AAPL) crosshairs this morning, after the tech giant lowered its quarterly revenue guidance on slipping iPhone sales in China. As a major retailer of Apple products, Best Buy shares are now down 4.4% at $51.26, and UBS just cut its price target on BBY to $57 from $70. 

Along with the broader stock market, the electronics retailer has taken a beating recently. The shares fell 33.2% last quarter -- the steepest quarterly loss since early 2014 -- and touched an annual low of $47.72 on Dec. 24.

Analysts have cooled on BBY, too. Now, just three give it a "strong buy" rating, while 14 others consider it a "hold" or worse. However, additional price-target cuts could be coming. The consensus 12-month price target of $72.05 represents a nearly 40% premium to current levels. 

Options bulls are beginning to hit the exits on BBY, too. Currently, the security sports a 50-day put/call volume ratio of 1.36 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which is in the 69th percentile of its annual range. This indicates that option buyers have picked up BBy puts over calls at a faster-than-usual clip in the past 10 weeks. 


a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
GDP, Consumer Spending Data in Post-Fed Spotlight
Next week will feature the final second-quarter GDP and fresh housing market data
Oversold Pot Stock Catches a Lift
PRVB stock is eyeing its lowest close in months, while IGC stock is set for a big win
What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.