#3 - Best Buy (NYSE:BBY)
Best Buy (NYSE: BBY) is another of the “cash cows” you can consider to offset a tapering announcement from the Federal Reserve. The company’s ROE as of May 21, 2021 is a healthy 53.8%. But Best Buy has a strong story to back up its balance sheet.
Best Buy was a strong, if not surprising, pandemic winner as many Americans needed to upgrade their technology to fit their work-from-home lifestyle. This demonstrated to investors that Best Buy was successfully executing its digital and omnichannel strategy. And although 2021 is shaping up to be slightly weaker, the company raised its outlook for comparable sales to decline in the range of 0% to 3% from previous guidance that called for a full-year decline in the high single-digits.
But the good news for investors is that this is not fully baked into the BBY stock price which is only up 18% for the year. And analysts suggest that the stock has another 8% to go with 75% of analysts saying that the stock is set to outperform.
About Best Buy
Best Buy Co, Inc engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions.
Read More - Current Price
- $85.55
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $101.06 (18.1% Upside)
