Stock on Watch: Best Buy Co., Inc. (BBY)

Company Profile:

Best Buy Co., Inc. operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. It operates through two segments: Domestic and International. The Domestic segment consists of the operations in all states, districts and territories of the United States, under various brand names, including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater, and Pacific Kitchen and Home. The International segment consists of all operations in Canada and Mexico under the brand names, Best Buy, bestbuy.com.ca, bestbuy.com.mx, Best Buy Express, Best Buy Mobile and Geek Squad. It Domestic and International segments have offerings in over six categories, such as consumer electronics, computing and mobile phones, entertainment, appliances, services and other. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was founded in 1966 and is headquartered in Richfield, Minnesota.

Recent News:

The Board of Directors of Best Buy Co., Inc. (BBY) has authorized the payment of a regular quarterly cash dividend of $0.28 per common share. The quarterly dividend is payable on July 5, 2016, to shareholders of record as of the close of business on June 14, 2016.

For the first quarter ended April 30, 2016(“Q1 FY17”), the company reported GAAP diluted earnings from continuing operations of $0.69, an increase from $0.10 in Q1 FY16.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

BBY’s strengths can be seen in its better growth, better profitability and better efficiency. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator. RSI is increasing to 46.02. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate Best Buy Co., Inc. (BBY) a Strong BUY.