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Top-ranked analyst: Don't buy the Best Buy dip

A Best Buy Co. store stands in San Francisco, California.
David Paul Morris | Bloomberg | Getty Images
A Best Buy Co. store stands in San Francisco, California.

One of the best analysts on Wall Street told clients to avoid Best Buy shares Tuesday because electronics sales will continue to be weak and there are no new catalysts to turn the stock around.

"We can't imagine seeing (Best Buy's) U.S. comps improving...meaningfully for the foreseeable future," wrote Citi Research's Kate McShane, who downgraded the stock to neutral from buy. "In the near term, Best Buy will likely be unable to grow earnings-per-share without successful iconic product launches or without taking meaningful share gains from peers."

McShane's picks have a 14 percent one-year average return, according to analyst ranking service TipRanks, placing her in the top 2 percent of all Wall Street analysts covering any industry.

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