BBY stock has cleared congestion near the $78 mark
Retail stock Best Buy Co Inc (NYSE:BBY) just notched its highest close since a late-May bear gap -- which was ultimately neatly contained by the 160-day moving average -- clearing recent congestion near the $78 mark in the process. Up almost 32% year-over-year, BBY shares seem destined to add to these gains and hit fresh all-time highs.
Future upgrades and/or price-target hikes out of analysts could help fuel more upside, since 12 of the 16 in coverage have "hold" or "strong sell" ratings, and the average 12-month price target of $75.79 is below current levels. Plus, short sellers have yet to appropriately clear away from the retailer, even with these bearish bets at multi-year lows. As it stands now, almost 8% of BBY's float is controlled by short sellers, so short covering could also fan the bullish flames.
Meanwhile, volatility expectations are near extreme lows, based on the stock's Schaeffer's Volatility Index (SVI) of 25% -- just 4 percentage points from a 12-month low.
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