Best Buy actually rose on earnings today. It hasn’t been the most popular stock over the past few years, but things change. Here’s a couple things that are making this story good.
- Virtual Reality gaming is here. It’s not what it’s going to be, but it’s here. So where do you go to check the numerous options out? Best Buy. They haven’t had a foot traffic driver like this in years and years. It’s going to take a few years for mass adoption of V/R, so this is a huge opportunity to BBY to change that feeling you get when walking into stores.
- Online sales were up 25%. For a company moving products like that, that’s a huge number that will catch investors’ eyes. We should note that when a retail location sells out of a product, they just order it from their online warehouse for you and eat the shipping costs.
- The Technicals are actually strengthening here.
The stock has moved to 9 year highs after breaking a very gradual downtrend from the mid 2000s. Shares had already broken a 3 year consolidation that now suggests a move to the mid-high 50s are on the table longer term.
Best Buy shares are pretty well positioned for once. If management can execute, this thing could be a killer in 2017.
Trade ’em well!