Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: It was a pretty miserable day for Best Buy as the company's stock was hammered after announcing disappointing third-quarter results. The retailer said that it was hurt in particular by TV sales as discounters like Wal-Mart (NYSE: WMT ) and Costco (Nasdaq: COST ) lured away customers by pushing lower-end -- and lower-priced -- flatscreens. To be sure, hhgregg is not Best Buy, and we won't hear any results out of the company until late January unless it pre-announces. However, investors are obviously worried that the pressure being applied to Best Buy by discounters is also squeezing hhgregg.
Now what: As long as shoppers are watching their wallets and are willing to sacrifice brand name -- and potentially quality -- in favor of price, hhgregg and Best Buy could both face a tough slog. Currently, both companies are continuing to push TVs from manufacturers like Sony (NYSE: SNE ) and Samsung, while Wal-Mart and Target (NYSE: TGT ) are focusing on brands like Vizio, Westinghouse, and Apex.
After today's drop, shares don't look particularly expensive, though they don't look particularly cheap either. The business is an interesting up-and-comer, so investors may want to keep an eye on it in case the share price gets more attractive.
Want to keep up to date on hhgregg? Add it to your watchlist.