Best Buy – Putting In A Great Performance

In May, I wrote an article about Best Buy (BBY). The stock price was still clearly beaten after taking a hit in the beginning of the year. At the time, I wrote that the perception of the investors about this stock was still being affected by non-recurrent items. However, the company was taking measures to correct some of its most urgent problems.


The company was striving to be price competitive in order to counter the show-rooming syndrome and to take on the online retailers. At the same time, the company was developing its own online sales strategy. And finally, Best Buy was going through a cost cutting program. All those measures seemed to make sense at the time and since the value metrics were attractive, I classified Best Buy as a value play.

A couple of months after I wrote the article, we start to see some effects of the turnaround. As we can see in graph 1, Best Buy has outperformed the S&P 500 (.INX), RadioShack (RSH) and even (AMZN).

Graph 1 – Best Buy vs S&P 500,, RadioShack (May 2014 to December 2014)


After a turbulent 2014 beginning, Best Buy can surely expect to enter 2015 with a renewed confidence.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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