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Best Buy Co., Inc. (BBY)

Best Buy stock forecast: buy or sell

Close on Sep 25th, 2020
$105.97 0.01%
3 months performance
0.25%
Published: September 27th, 2020 - 16:26

Best Buy stock outlook

  • Best Buy closed on Friday at $105.97 after moving up a 1.15%.
  • From the chart point view, price is drawing a scaled uptrend since last March with higher tops and higher bottoms. Up to date, shares made a 122.91% gain since the beginning of this rally
  • Best Buy Co., Inc. retails technology products in the United States, Canada, and Mexico. The company operates in two segments, Domestic and International.

Disclaimer:
The comments published in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this paper does not have any knowledge of the specific positions of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for education motives only

Best Buy stock charts

Should I buy Best Buy stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is BBY stock a buy?

In the current situation of Best Buy there is just one buy setup eligible:

Uptrend buy setup

Best Buy stock continues to trend higher since last March and has marked an amazing 122.91% gain. Price marked a pull back in this uptrend at $102.30 on September 8, and since then it bounced up a 3.59%. Breaking out above $118.87 - it's last top - will be a good entry point if Best Buy resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $106.98

Buy setupBuy pointStop lossRisk
Uptrend buy setup$118.87$106.9810%

Should I sell Best Buy stock?

When you own stock shares with some profit, it's really hard to decide the correct moment to sell and get your profits. Trading strategies allow us to avoid impetuous decisions based on our personal moods or the noise surrounding the market. When selling, as well as buying, our setups are very easy to follow and are only valid for selling shares in your porfolio, not for shorting Best Buy stock

As a rule of thumb, you must never mantain a trade that produces higher than expected losses upon the buy. When to sell shares must always be ruled by the stop-loss (automatic or manual)

Is it time to sell Best Buy stock?

Currently, Best Buy stock doesn't match any of our preferred sell setups, so if you hold Best Buy shares and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell Best Buy stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating posted in the last 30 days for Best Buy

Technical analysis

Best Buy stock started an uptrend last March, and grew an amazing 122.91%. The chart shows higher peaks and higher lows, and along the way gave some buy points for those who wanted to invest. Latest pullback was on September 8, when price bounced at $102.30. Currently, the price moves in a consolidation between its last top ($118.87) and its last bottom ($102.30)

SMAs overview

Moving averages are indicators for traders to detect market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

BBY SMAs chart

Supports and resistances

Market investors use supports and resistances to find price points on a chart that tend to act as glass ceiling, preventing the price of shares to move in certain direction. A support level is a level where the price tends to stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it will probably continue descending until approaching another support level. On the other hand, a resistance level is where the price may find a curb as it moves up. Again, this means that the price is more liable to "bounce off" at this level, and if it finally breaches this level, the price will rally more easily until it meets the next resistance

The current resistance levels are:

  • R1: $118.87 (12.17% above)
  • The current supports are:

  • S1: $102.30 (-3.46% below)
  • S2: $90.07 (-15% below)
  • S3: $89.92 (-15.15% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-known studio developed by John Bollinger. Essentially, the Bollinger Bands are lines that run around a moving average, varying the distance from the bottom to the top depending on market volatility. They are usually plotted by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    BBY RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to map the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    The RSI dropped below the overbought level of 70 in late August after just crossing to the overbough zone for 1 day (weak signal). The RSI reading on Friday was 48.57. Best Buy stock dropped a 5.43% since RSI lost the overbought zone

    BBY RSI chart

    Earnings and financials

    Best Buy Co., Inc. (BBY) released 2nd-quarter earnings of $1.71 per share, highly surpassing the Wall St consensus estimate of $1.08 per share. This Q2 report represents an earnings surprise of 58.33%. Turnover resulted of $8.6 billion in contrast to $8.2 billion predicted by market consensus.

    In comparing, the EPS for the same quarter last year was $1.08, so reported EPS is a gain of 58.33%. Looking at revenue, figures sliced a -6.32% compared to $9.1B same quarter last year.

    Best Buy presents quarterly financial report next November. Estimated earnings of %s per-share for this quarter is $1.55. Earnings reporting day has an additional risk for investors as the results disclosed can soar and sink the price with lower volume and not respecting your buy or stop-loss orders. You can uncover more information about the earnings call and the financial reports on the Investor Relations section of its website: http://www.bestbuy.com.

    BBY revenues and profits chart