Best Buy Co., Inc. : Keep objectives!
By Alexandre Nutte
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$25.87 | $0 | $24.85 | -100% |
In December, the distributor specialized in consumer electronics has published a stable revenue of $8.4 billion. Best Buy has confirmed its objectives for 2012, earnings per share between $3.35 and $3.65. Thomson Reuters’ consensus is $3.31. Currently, Best buy company is trading at a very low level compared to historic benchmark as shown by the ratio “enterprise value/revenue” at 0.19x. Besides, all of 27 analysts polled by Thomson Reuters have a positive opinion on the company with a mean consensus at “Hold”.
Technically, Best Buy’s stock gets back one’s colour. After filling the last bearish gap, the share is supported by the $25 short-term support and the 20-days moving average. Furthermore, the support has been successfully tested several times.
Thus, it would be advisable for investors to take a buy order on the support at the current price and to aim at $28.40. If the security drops below $25, this strategy will be canceled.