Best Buy Stock Flailing on Mixed Q4 Results

BBY is up over 38% year-over-year

Assistant Editor
Feb 25, 2021 at 9:39 AM
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The shares of Best Buy Co Inc (NYSE:BBY) are down 8.5% to trade at $103.83 this morning after the company's fourth-quarter revenue and same-store sales fell short of analysts' expectations. The tech store giant's earnings of $3.48 did beat Wall Street's forecasts by 3 cents, however, but the equity is suffering as the pandemic-fueled electronics demand begins to cool off.

During last March's broader market pullback, BBY dipped as low as $48.11 -- its lowest level in a year at that point. The security mounted a monumental comeback, however, which culminated in a new all-time high of $124.89 on Nov. 5 as stay-at-home orders pushed consumers toward more lockdown-friendly entertainment outlets. While the shares have yet to rally back toward this peak, the stock is up 38.6% year-over-year.

The brokerage bunch is optimistic toward the equity, too. In fact, 10 of the 16 covering BBY carry a "strong buy" rating, with the remaining six at a "hold." Meanwhile, the 12-month consensus price target of $122.98 is a large 18.3% premium to last night's close. 

For those wanting to weigh in on BBY's next move, options may be the way to go. The stock's Schaeffer's Volatility Index (SVI) of 47% sits higher than just 19% of readings in its annual range, suggesting short-term option traders are pricing in relatively low volatility expectations -- a boon for premium buyers.

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