Best Buy beat their numbers, but the market's response was less than enthusiastic. Is there any reason to go near a stock like this now?
“Duck and cover,” exclaims Jeff Macke. Although Best Buyreported results that clearly beat analyst expectations its stock, (as well as shares of most electronics retailers) fell on Tuesday.
In this difficult economic environment customers bought lower-margin items such as notebook computers and video-game consoles.
“You’ve got to play to the idea that people are going to be staying home this summer and that means retail could be decent for a trade. But you’ve got to buy when the market hates them and sell when there’s any kind of enthusiasm. Right now we’re in the between place,” Macke says.