BBY Stock Pops on Sunny Holiday Forecast

The stock hit a 14-month peak out of the gate today

by Lillian Currens

Published on Nov 26, 2019 at 9:51 AM

The shares of electronics retailer Best Buy Co Inc (NYSE:BBY) are up 5.9% to trade at $78.59 this morning, after the company posted a same-store sales beat and profit that exceeded expectations for its third quarter. The company also said it anticipated a strong holiday shopping season, predicting a fourth-quarter profit that topped analysts' estimates.

This pop has put the equity at levels not seen since September 2018, with the security earlier tagging a 14-month peak of $78.61. The shares are also bouncing off their 40-day moving average, and now boast a roughly 44% year-to-date gain. 

Analysts have remained quiet following this morning's earnings announcement, which could change, considering that 10 brokerages in coverage consider BBY a "hold," compared to only five who say it's a "buy." What's more, the consensus 12-month target price is right in line with current levels. 

The options pits are singing a different tune, though. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 2.35 calls have been bought to open for every put during the last 10 weeks. What's more, this ratio sits in the 96th percentile of its annual range, suggesting a bigger-than-usual appetite for bullish bets of late. 

A Schaeffer's exclusive


Access your FREE insider report before it's too late!



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

Former Hedge Fund Manager Makes $25,000 "Trading Breakthrough"
Click to continue to advertiser's site.
Dow Cools as Coronavirus Outbreak Takes Grasp of Markets
The Nasdaq is about to snap a six-week win streak
Copper Stock Picks Up Bear Notes After Earnings
FCX gapped lower yesterday after earnings
Former Hedge Fund Manager Makes $25,000 "Trading Breakthrough"
Click to continue to advertiser's site.