Why Best Buy Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics retailer Best Buy (NYSE: BBY  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Best Buy and see what CAPS investors are saying about the stock right now.

Best Buy facts

 

 

Headquarters (founded)

Richfield, Minn. (1966)

Market Cap

$9.3 billion

Industry

Computer and electronics retail

Trailing-12-Month Revenue

$48.2 billion

Management

CEO Hubert Joly (since 2012)

CFO Sharon McCollam (since 2012)

Trailing-12-Month Return on Equity

(13.5%)

Cash/Debt

$908.0 million/$1.7 billion

Dividend Yield

2.5%

Competitors

Amazon.com 

Apple 

Wal-Mart 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 23% of the 3,453 members who have rated Best Buy believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, dhudson2427, succinctly summed up the Best Buy bear case for our community:

The current hype will wear off after all of the "changes" prove to be window dressing. I respect their effort to keep the brick and mortar presence, but unless they can find a way to make legitimate profits from products with profit margin, they will be forced to move to a model that consists of tiny [Best Buy] mobile stores and a website.

The brick-and-mortar vs. e-commerce battle wages on, with Best Buy caught in the middle. After what might have been its most tumultuous year in history, there are now even more unanswered questions about the future for the big-box electronics retailer. How will new leadership perform? Will a smaller store format work out for both the company and its brave investors? Should you be one such brave investor? To help answer all these questions, The Motley Fool has released a premium research report detailing the opportunities -- and the risks -- in store for Best Buy. Simply click here now to claim your comprehensive report today.


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  • Report this Comment On June 10, 2013, at 8:15 PM, RoscoePColetrane wrote:

    More sound advise [sic] from the Fool since they've been continually correct on their calls regarding BBY...

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