Best Buy Stock Could Boast a Big Win for Bulls

Analysts are showing a pessimistic outlook

Jan 7, 2020 at 3:45 PM
facebook twitter linkedin

Electronics retailer Best Buy Co Inc (NYSE:BBY) saw its stock rise to new highs in mid-December following a positive earnings release in November, rallying past previous record highs in the $85 region. The shares are holding just above this previous peak now, and a shift in sentiment could have them adding to their year-over-year gain of 66% and exploring uncharted territory once again.

bby stock jan 3

Despite the technical and fundamental strength seen recently, many analysts remain bearish. In fact, the majority in coverage have "hold" ratings, leaving the door wide open for upgrades. Such bullish attention could bring more buyers to BBY.

Best Buy could also enjoy short-covering tailwinds, since short interest has been declining recently, down 14.6% in the last reporting period. With 3.4 days' worth of buying power still held by short sellers, based on average trading volumes, there's potential for a sustained short-squeeze on BBY.

Lastly, our recommended call has a leverage ratio of 7.11, and will double in value on a 13.6% gain in the stock.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this BBY commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.




These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners