BBY stock is soaring after a holiday-quarter beat
The shares of Best Buy Co Inc (NYSE:BBY) are up 16% at $69.93 today, after the electronics retailer announced fourth-quarter earnings and revenue that beat expectations. The company also issued upbeat guidance and announced a dividend hike. BBY stock is now pacing for its biggest one-day pop since May 2017.
BBY stock just bottomed out at an annual low of $47.72 on Dec. 24, and has subsequently surged roughly 47%, supported by the 20-day moving average. Prior to today's jump, the equity was running into into pressure in the $61-$62 area, but is now set to close atop its 200-day moving average for the first time since early October.
A round of analyst upgrades could be in the cards for Best Buy, too. The stock currently has 11 tepid "hold" ratings and one "sell," compared to just three "strong buys." Plus, the consensus 12-month target price of $69.32 is right in line with current levels, leaving the door wide open for potential price-target hikes.
What's more, several short sellers could be kicking rocks. The 15.41 million shares sold short represents a healthy 6.6% of the stock's available float. At BBY's average daily trading volume, it would take over a week for traders to buy back these bearish bets, leaving plenty of room for a short squeeze.