BiggnightsIs Best Buy the "Best Buy" on the Market?
March 22nd 2011 04:28
Sorry for the pun, that was lame.
However, bad jokes aside, that title may have some merit behind it.
Best Buy had some real positive cash flows coming out of last year, and they are finally beginning to seize control of the electronic goods market, especially with Circuit City out of the picture. Yes, I realize that is old news, but Best Buy is continuing to reap the benefits. Keep an eye on its debt to equity ratio, though, as Best Buy recently issued $1 billion in debt.
Either way, with past growth rates of around 10%, many analysts have predicted a similar growth rate for Best Buy and its subsidiaries this year.
Investors may be hesitant to take a chance with a company selling for $17 below its 52 week high. However, a surge similar to what Best Buy saw in late 2010 is definitely not out of the question.
The end of Best Buy's rising stock price saw them lose a lot of market share as well, but this came largely in part because of a decline in the general public's demand for many electronic products.
As Best Buy approaches its 52 week low, don't be afraid to take a chance. It may be a volatile stock, but we're looking at a volatile market right now. Many Wall Street analysts used their predicted growth rates to calculate Best Buy rising up to as high as $50 per share in 2011. If you're a fan of the discounted cash flow method, then you might have to take the bait for the former Forbes Company of the Year.
Considering it closed at $31.90 today, Best Buy may not be a sure thing, but it's at least a "good buy."
However, bad jokes aside, that title may have some merit behind it.
Best Buy had some real positive cash flows coming out of last year, and they are finally beginning to seize control of the electronic goods market, especially with Circuit City out of the picture. Yes, I realize that is old news, but Best Buy is continuing to reap the benefits. Keep an eye on its debt to equity ratio, though, as Best Buy recently issued $1 billion in debt.
Either way, with past growth rates of around 10%, many analysts have predicted a similar growth rate for Best Buy and its subsidiaries this year.
Investors may be hesitant to take a chance with a company selling for $17 below its 52 week high. However, a surge similar to what Best Buy saw in late 2010 is definitely not out of the question.
The end of Best Buy's rising stock price saw them lose a lot of market share as well, but this came largely in part because of a decline in the general public's demand for many electronic products.
As Best Buy approaches its 52 week low, don't be afraid to take a chance. It may be a volatile stock, but we're looking at a volatile market right now. Many Wall Street analysts used their predicted growth rates to calculate Best Buy rising up to as high as $50 per share in 2011. If you're a fan of the discounted cash flow method, then you might have to take the bait for the former Forbes Company of the Year.
Considering it closed at $31.90 today, Best Buy may not be a sure thing, but it's at least a "good buy."
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