Best Buy Looks Like a Value Play After Rising Comps - Upgrade to Long
Best Buy's recent results show stabilizing sales growth, improving margins and a sizable free cash flow cushion. At roughly $87.90, BBY trades at a mid-teens P/E, an EV/EBITDA of ~6.6 and a near 4.3% yield. We upgrade BBY and lay out a mid-term (45 trading days) long trade with clear entry, target and stop-loss levels.