The rally allowed Best Buy to join several brick-and-mortar retailers that reached 52-week highs just as 2017 drew to a close.
December's jump was powered by rising optimism that the electronics specialist will see robust sales gains over the key holiday shopping period. Best Buy's third-quarter report, issued in mid-November, laid the foundation for this confidence after CEO Hubert Joly and his team boosted their full-year outlook following another quarter of healthy revenue growth.
Then, as the shopping season ramped up, investors learned that consumer spending remained strong over the holidays in physical stores and at online merchants. That's good news for popular retailing destinations like Best Buy.
Best Buy's latest forecast calls for comparable-store sales to rise by between 1% and 3% in its U.S. locations in the fourth quarter, thanks to a flood of innovative product releases including Apple's iPhone X. Yet the better news for investors is that Joly's long-term rebound plan appears to be working.
Sales are steadily rising and Best Buy seems poised to meet, or even exceed, management's goal of between $4.75 per share and $5 per share of annual earnings by fiscal 2021.
Demitrios Kalogeropoulos owns shares of Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy.
More from The Motley Fool
Why Did Best Buy, Costco, and Wal-Mart Stock Make Gains in 2017?
All three retailers had very strong years.
How the Tax Bill Could Hurt Amazon
Without much in the way of profits, the tax bill does little for the e-commerce giant. It's a different story for those looking to dethrone the online juggernaut.
3 Retailers Hitting 52-Week Highs Right Now
Who says that brick-and-mortar stores are dead? Best Buy, Five Below, and Gap are all trading at their highest levels of the year.