×

Take Your Position: Best Buy

Best Buy reports earnings on Tuesday. Here’s what you should know.

Although the company has gained market share from Circuit City Stores closing, it is still seeing sales constrained as consumers hold back on big-ticket items such as laptops.

And Best Buy continues to face tough competition from online retailers and mass merchants.

In August the company said it was slowing the pace of its new store openings, to 22 stores during the fiscal third quarter, down from an average of about 46 per quarter.

However, William Blair & Co. analyst Jack Murphy is optimistic. He rates the company "Outperform," and said in a note to investors on Thursday that he expects Best Buy's second quarter to show "significant market share gains, continued gross margin improvement and tight cost control."

Meanwhile, Deutsche Banks analyst Mike Baker rates the company a “Buy” wrote in a client note that improving sales trends for some items should help results.

However not everybody is bullish.

I’d be a seller ahead of earnings, says David Strasser an analyst with Janney Montgomery Scott. We think earnings come in lighter than expected.

And on the Fast Money desk it's the bears who have an ally. "I fully agree with David," adds Joe Terranova.



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Sept. 14, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman Owns (PDE), (RIG); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC); Finerman Owns (WFC) Preferred Shares; Finerman's Firm Owns (WMT), (RIG), (MSFT), (NOK), (PBR), (PDE), (SYK), (FLIR); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Najarian Owns (AAPL) & Short (AAPL) Calls; Najarian Owns (BAC) & Short (BAC) Calls; Najarian Owns (BUCY) & Short (BUCY) Calls; Najarian Owns (C) Calls; Najarian Owns (FCX), Owns (FCX) Put, Is Short (FCX) Calls; Najarian Owns (JPM) & Is Short (JPM) Calls; Najarian Owns (JOYG) & Short (JOYG) Calls; Najarian Owns (MS) And Is Short (MS) Call; Najarian Owns (MSFT) And Is Short (MSFT) Call; Najarian Owns (PALM) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (TEVA); Najarian Owns (V) & Short (V) Calls; Najarian Owns (WFC) Put Spread; Najarian Owns (YHOO) Calls ; Najarian Owns (DNDN) Calls; Najarian Owns (HOLX) Calls; Terranova Owns December Gold Futures; Terranova Is Short (CCL); Terranova Works For (VRTS)

GE is the parent company of CNBC

For Jeff Harte:
Sandler O'Neill Expects To Receive Compensation from (BAC)
(BAC) Is A client of Sandler O'Neill
Sandler O'Neill Expects To Receive Compensation from (GS)
(GS) Is A client of Sandler O'Neill



CNBC.com with wires