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 (BBY -1.35%) 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 |
$6.5 billion |
|
Industry |
Computer and electronics retail |
|
Trailing-12-Month Revenue |
$49.6 billion |
|
Management |
CEO Hubert Joly (since 2012) CFO Sharon McCollam (since 2012) |
|
Trailing-12-Month Return on Equity |
(5.7%) |
|
Cash/Debt |
$1.8 billion / $2.3 billion |
|
Dividend Yield |
3.7% |
|
Competitors |
Amazon.com (AMZN 1.49%) Apple (AAPL 0.51%) Wal-Mart (WMT 1.02%) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 23% of the 3,461 members who have rated Best Buy believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, MrOneHundred, succinctly summed up the Best Buy bear case for our community:
There are simply way too many products offered by the business to attract any one group of customers looking for specialization in a certain product. Not to mention the amount of market share being stolen by competitors (most notably Amazon) which I think are executing sales in a successful manner. ...
According to the WSJ, "sales of smartphones have been unable to offset the revenue the company formerly reaped from sales of flat-screen TVs, whose prices and margins have eroded." Hear that? Best Buy is having a hard time selling smart phones even!
Fundamentals also aren't very bright here. Factor in unfavorable market conditions, and there you have it!
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