GO
Loading...

Best Buy, Best of Breed: Pro

Monday, 3 Jun 2013 | 5:58 PM ET
Best Buy Best-of-Breed: Pro
Monday, 3 Jun 2013 | 5:16 PM ET
Despite a stock price up almost 134 percent year to date, David Magee of SunTrust Robinson Humphrey said it has farther to climb.

Despite a share price up almost 134 percent year to date, Best Buy could have farther to climb, David Magee of SunTrust Robinson Humphrey said Monday.

"It's not easy to upgrade a stock when it's had this kind of move," he said. "At the same time, when you see the valuation, it's still not expensive, and all the things this company is doing to become more relevant to the customers, we think it's got a major second leg ahead of us here."

Shares of Best Buy closed at $27.36, down 19 cents.

On CNBC's "Fast Money," Magee noted that the electronics chain had fared well against increased online competition, as well as a recession, calling it "best of breed in the space, which is poised to grow faster."

Best Buy's valuation could see a climb, he added.

"We don't think it's unreasonable to expect low- to mid-teens again," Magee said, adding that the stock could hit $25 per share.

While television technology doesn't appear to be introducing new features to lure consumers back, he did see one potential catalyst in real estate.

"If housing continues to improve, that's going to pull along this sector as people buy upgrade TVs or add TVs as they find new homes," he said.

  Price   Change %Change
S&P 500
---
BBY
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report

  • Jay Yarow, The Business Insider, and Steve Milunovich, UBS, discuss whether Tim Cook is to blame for Apple's drop in growth. I think it's pretty clear they missed the big phone market and overestimated the success of the plastic 5C phone, says Milunovich.

  • CNBC's Eamon Javers reports on Bill Ackman's stake in Allergan. Javers says this is a classic case of insider trading that is not against the rules.

  • FMHR trader Josh Brown thinks Dunkin' Brands looks fantastic technically, while Mike Murphy says investors are questioning the company's massive expansion plans.