"I think they're going to be the biggest winner this holiday season," said JPMorgan analyst Chris Horvers.
(Read more: Best Buy warns promotions could hurt holiday quarter margins)
Following the company's earnings report, its stock dove nearly 11 percent. Before the announcement, the shares had risen more than 225 percent so far this year, but after regaining ground, the shares are now up about 238.48 percent, making it the second-best performing stock in the S&P 500 behind Netflix. Based on analysts' price targets, the stock could still have more room to run.
UBS analyst Michael Lasser said the dip was a market overreaction, and agreed that the retailer will have a "great holiday." He pointed out that even with Best Buy's price-match guarantee, the cost savings it has accrued from reworking its corporate infrastructure, creating a more efficient supply chain and shuttering unprofitable stores should offset any damage to its margins.
In a research note, he estimated that the retailer has more than 50 percent of its leases coming up for renewal in the next few years, and that its transformation plan could eventually produce $1 billion in cost savings.
Aside from these savings, Horvers pointed out that price matching is nothing new at Best Buy. The retailer has always matched Wal-Mart on price, and it's the second year it will match Amazon, he said. Stifel Nicolaus analyst David Schick sounded a similar note, saying it's important investors don't lose sight of the fact that Best Buy's progress "doesn't get erased with what happens every year—an aggressive Wal-Mart."
"What's a retailer going to do: Are they going to get promotional? Of course," he said.
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Although Schick wrote in a research note that Wal-Mart continues to do what it does best, noting its increased price promotion, he said, "Best Buy is doing a much better job of being Best Buy than they have in the past."
'More economically compelling'
Part of this improvement has come from Best Buy better integrating its website with its in-store initiatives. Lasser wrote he expects the company can continue to grow its online sales at a double-digit rate, especially as it rolls out capabilities to buy online and ship from store. The retailer has already shown an improvement in its online business, posting a 15.1 percent domestic same-store sales gain in the most recent quarter.
In addition to more fulfillment options, its online progress can be attributed to improved website navigation and search functionality, an integrated loyalty program and prices that are neck and neck with competitors such as Wal-Mart and Amazon.
"They've made it much more economically compelling to shop at Best Buy," Lasser said.