Opinions John Stephenson
Best Buy Company IncBBYTOP PICKFeb 13, 2014
John StephensonStock price when the opinion was issued
As of Aug 04, 2026. Market Open.
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Has a clean balance sheet, lots of cash, and pays a 4% dividend. Also, a big TV refresh cycle is coming, the first in a decade. BBY is the exclusive seller of next-wave RGB TVs for the first year in the US. The stock is cheap. RGB won't be as big as the OLED TV cycle, but will drive the cycle for 1.5 years.
(Analysts’ price target is $78.75)
They've had seven quarters of declining sales. When this reports, will BB get a Target-like market reaction (low expectations, beats, so a strong rally) or will BB get Amazon'd?
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Premium contentOur PAST TOP PICK with BBY has triggered its stop at $70. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 11%, when combined with our previous recommendations.
Jamie Murray Premium content
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Worst performer on the S&P thus far this year. This is a multiyear turnaround. It fell over 35% at the beginning of the year. Earnings were slightly disappointing. It leads in every single category that it has. They are turning around. They have the best price guarantee so a sales associate will match any price on Amazon. Amazon is starting to increase their rates in a way because they now have to charge sales tax in many of the states. There is a lot of low hanging fruit. They have to fix the website, fix customer experience a little bit, but if they can do that, they can selloff their Chinese affiliate which is worth hundreds of millions of dollars. Cheap and thinks it will be 30%-40% higher next year. Dividend yield of 2.67%.