Best Buy (BBY) Offering Possible 8.23% Return Over the Next 8 Calendar Days

Best Buy's most recent trend suggests a bullish bias. One trading opportunity on Best Buy is a Bull Put Spread using a strike $111.00 short put and a strike $106.00 long put offers a potential 8.23% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $111.00 by expiration. The full premium credit of $0.38 would be kept by the premium seller. The risk of $4.62 would be incurred if the stock dropped below the $106.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Best Buy is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Best Buy is bullish.

The RSI indicator is at 60.88 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Best Buy

Best Buy (BBY) Drops Despite Beating Earnings Estimates
Tue, 08 Sep 2020 17:33:20 +0000
Best Buy stock posted an all-time high a day before the electronics and appliances retailer posted positive earnings results on Aug. 25.

Why Best Buy Stock Rose 11% in August
Sun, 06 Sep 2020 15:42:00 +0000
What happened Best Buy (NYSE: BBY) shareholders outpaced a booming market in August. The stock rose 11% compared to the S&P 500's 7% increase, according to data provided by S&P Global Market Intelligence.

3 Top Retail Apocalypse-Proof Stocks to Watch in September
Sat, 05 Sep 2020 12:00:00 +0000
Additionally, onetime top retailers have declared bankruptcy and struggle just to remain in existence. For this reason, retail stocks such as Best Buy (NYSE: BBY), BJ's Wholesale (NYSE: BJ), and Dollar General (NYSE: DG) could even be profitable investments.

Don’t Sweat the Sell-Off, Buy the Post-Earnings Dip in At Home Stock
Fri, 04 Sep 2020 11:44:18 +0000
There's no need to hit the panic button on At Home (NYSE:HOME) even though HOME stock plunged in early September.Source: Shutterstock.com The fall came after the home goods retailer reported second quarter numbers that — while very strong — weren't strong enough to justify what had been a 384% rally in the stock in the three months leading up to the print.This is a perfectly natural, totally normal sell-off in a stock that's been red-hot. The sell-off just looks super big because the rally has also been super big. Indeed, if you back out and look at the big picture, HOME stock is still up 250% over the past three months.InvestorPlace – Stock Market News, Stock Advice & Trading TipsFocusing on that big picture, it becomes clear that the long-term growth narrative supporting At Home is very compelling, and that the numbers imply significant upside in the stock from here over the next 5 to 10 years. * 10 Blue-Chip Stocks Ideal for Any Investor So don't stress this sell-off. Instead, embrace it. Buy the dip. Hold for the long haul.Here's a deeper look. Strong Earnings and HOME StockDon't let the huge sell-off in HOME stock fool you. At Home's second quarter earnings report was fabulous.In numbers: * Net sales rose 50.5%. * Comparable sales rose 42.3%. * Store count rose 7.4%. * Gross margins expanded 880 basis points to 38.1%. * Adjusted SG&A dollars dropped 10.8% year-over-year, leading to SG&A rate compression of 900 basis points. * Adjusted operating margins nearly quadrupled year-over-year to 24.6%. * Operating profits rose 446%.Broadly, the quarter showed that At Home continues to win share in the burgeoning home goods retail market, thanks to physical footprint expansion, as well as the company's unique value prop as an all-in-one home goods superstore.This momentum isn't slowing down, either. While the company did not issue an official guide, management commented on the conference call that third quarter comparable sales trends to-date are in-line with Q2, so up about 40%.If the numbers were so great, then why did HOME stock sell-off?Because management already reported preliminary second quarter numbers back in late July, and the numbers turned out to be exactly what management said they would be. Investors who have been bidding up the stock ferociously over the past few weeks probably wanted those numbers to be better than the prelim numbers, and/or were looking for a strong Q3 guide.They got neither. So selling ensued.It's just near-term trading dynamics. Nothing to worry about in the big picture. Compelling Long-Term Growth NarrativeZooming out, the big picture, long-term growth narrative supporting At Home and HOME stock is very compelling.In short, the company has a unique opportunity to leverage its all-in-one, superstore shopping experience to nationally consolidate the fragmented U.S. home goods retail market.If you've ever remodeled your kitchen, spruced up your bedroom, or upgraded the patio furniture, then you know that the home goods shopping process is not simple. That's because the market is highly fragmented. Whereas companies like Best Buy (NYSE:BBY) and Home Depot (NYSE:HD) offer an all-in-one, superstore shopping experience for buying consumer electronics and building materials, respectively, no such store exists in home goods.At Home has an opportunity to turn into that superstore for the home goods sector, and consolidate this retail category that is overly fragmented.That's because At Home has all the ingredients necessary to be a home goods superstore.The stores are massive. They average about 100,000 square feet, so on par with a Walmart or Target (NYSE:TGT) store. That's about 2X the size of your average Bed Bath & Beyond (NASDAQ:BBBY) store and 4X the size of your average HomeGoods store.The product selection is enormous. Every At Home superstore has over 50,000 product SKUs. And the prices are cheap. The average price point at At Home is just $15.Leaning into its size, product and price advantages, At Home has a compelling opportunity to turn into the Home Depot or Best Buy of the home good sector over the next 10 years. Tons of Upside PotentialThe numbers imply significant upside potential for HOME stock in the long run.At Home exited Q2 with 219 stores.HomeGoods has 800+ stores. Bed Bath & Beyond has 1,000+ stores. There's tons of real estate growth potential here. Indeed, management thinks At Home can continue to grow its store base by ~10% per year to 600+ stores at scale.Each one of those stores does about $6 million in annual sales. Store level profit margins at the stores hover around 30%. The math there implies $3.6 billion in 2030 sales, and $1.1 billion in store-level profits.Taking out $250 million for corporate overhead, $150 million for depreciation and amortization, $40 million for interest expense and 20% for taxes, you're left with potential net profits in 2030 of over $500 million.A 20X multiple on that implies a potential future valuation for At Home of $20+ billion.This is a $1 billion company today. Bottom Line on HOME StockAt Home stock is one of my favorite long-term, small-cap growth stocks to buy for the next 5 to 10 years. The post-Q2 earnings sell-off does not change the long-term bull thesis. Rather, it's just the stock taking a breather after a torrid run higher.To that end, long-term investors shouldn't run from HOME stock here. They should embrace current weakness. Buy the dip. Weather the storm. And hold for the long haul.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm.  As of this writing, Luke Lango did not own a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Don't Sweat the Sell-Off, Buy the Post-Earnings Dip in At Home Stock appeared first on InvestorPlace.

The Zacks Analyst Blog Highlights: Target, JD.com, Best Buy, Shopify and Kroger
Fri, 04 Sep 2020 09:09:09 +0000
The Zacks Analyst Blog Highlights: Target, JD.com, Best Buy, Shopify and Kroger

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.