Best Buy, specialty retailer of consumer electronics, was heavily penalized and is now in an oversold situation near to a solid support area.
From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.13x. However, analysts have revised slightly downward their earnings forecasts. With an EPS estimated at USD 3.41 for this year and USD 3.6 for the next year, Best Buy is currently paid 5.35 and 5.06 times the results.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at USD 20, shows. Nevertheless, the stock seems in an oversold situation, near to its USD 18.02 support in daily data, because it was 2.83 % down in the last trading sessions. This level might stop the bearish trend in the short term.
Therefore, the proximity of the USD 18.02 support is an opportunity to take a long position. The first goal is a return in the USD 20.31 resistance area, that is a potential of 11.4 %. A stop loss order can be placed under the support currently tested.
Best Buy Co., Inc. specializes in retail distribution of consumer electronic products and entertainment products. The group provides primarily computing products (computers, peripherals, software), hi-fi products (televisions, DVD players, etc.), cameras, mobile phones, audio systems and home appliances (washers, refrigerators, etc.). Net sales break down by area of activity as follows:
- the United States (92.4%): activity insured, at 28/01/2023, through a network of 978 stores distributed by names mainly between Best Buy (925) and Pacific Sales (20);
- Canada (7.6%): 160 stores distributed between Best Buy (127) and Best Buy Mobile (33).
Products are also marketed through Websites (primarily Bestbuy.com, BestBuyMobile.com, GeekSquad.com, MagnoliaAV.com, PacificSales.com, and FutureShop.ca).
BEST BUY CO., INC. 
