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3 Reasons to Buy Best Buy Now

By Dave Mock - Updated Apr 5, 2017 at 8:05PM

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There are lots, but here are three biggies.

Whatever's going on in the market or a specific company's history, there are always reasons to consider buying shares in a business. After all, some of the best opportunities in stocks are born from historically bloody times.

Motley Fool CAPS hosts a boatload of opinions from more than 120,000 members on nearly 5,400 stocks, giving good reasons to own -- or sell -- a stock.

In the case of beaten-down gadget retailer Best Buy (NYSE:BBY), a total of 2,895 members have contributed their bullish or bearish opinion on the company. After scouring the detailed information packed in pitches and other comments on Best Buy, I've found three of the top reasons to consider shares of Best Buy today:

1. Stepping it up
In an effort to become the retailer of choice for shoppers, Best Buy is taking the extra step to enhance customers' experiences. It's joining Target (NYSE:TGT) in offering gadget gift cards, conducting informative nationwide customer surveys, and implementing programs like its "true stories" ad campaign.                                

It's also beefing up its online presence. Nearly 60% of its shoppers start at BestBuy.com, whether they end up buying online or in-store. The company offers in-store pickup and numerous incentives to drive traffic away from Amazon.com (NASDAQ:AMZN), Overstock.com (NASDAQ:OSTK), and other online retailers.

2. Happy Holidays
Despite a slowing economy, shoppers were still out in force for Black Friday, looking for the best deals at Wal-Mart (NYSE:WMT), Apple (NASDAQ:AAPL) Stores, Best Buy, and Sears (NASDAQ:SHLD). According to the National Retail Federation, consumers are still opening their wallets, spending about 7.2% more than they did last year during Black Friday weekend.

3. Beaten-down value play
Best Buy has been improving market share, and its strong balance sheet and financials are superior to those of competitors like Circuit City. After a gloomy outlook for 2009 recently hammered shares, many investors are now thinking of following many Best Buy insiders' cue, and buying the stock again at its discounted price.

Of course, there's a lot more devil in the details of these buy-side opinions, which is why CAPS is such a great resource to check and balance your own analysis. You can read the bullish and bearish sides to every stock. To see what the very best CAPS members are saying now about Best Buy, just click on over to Motley Fool CAPS.

Further Foolishness:

The Motley Fool Stock Advisor service looks for companies with strong management poised to beat the market over the long haul. To see all the stocks that have helped Tom and David Gardner beat the market by 25 points on average, take a free 30-day trial.

Fool contributor Dave Mock only has three things on his Christmas wish list. He owns no shares of companies mentioned here. Wal-Mart, Sears Holdings, and Best Buy are Inside Value selections. Best Buy, Amazon.com, and Apple are Stock Advisor selections. The Fool owns shares of Best Buy. The Fool's disclosure policy is officially done with all of its holiday shopping, thanks to Chia Pets.

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Stocks Mentioned

Best Buy Co., Inc. Stock Quote
Best Buy Co., Inc.
BBY
$81.33 (1.28%) $1.03
Wal-Mart Stores, Inc. Stock Quote
Wal-Mart Stores, Inc.
WMT
$132.60 (0.29%) $0.38
Target Corporation Stock Quote
Target Corporation
TGT
$173.39 (0.53%) $0.91
Sears Holdings Corporation Stock Quote
Sears Holdings Corporation
SHLDQ
Apple Inc. Stock Quote
Apple Inc.
AAPL
$173.19 (0.63%) $1.09
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$143.18 (-0.26%) $0.37
Overstock.com, Inc. Stock Quote
Overstock.com, Inc.
OSTK
$30.54 (-3.69%) $-1.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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