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Though on Friday Best Buy (BBY) stock managed to hit a new milestone, today is 6% down.
The shares of retail electronic giant Best Buy Co Inc (NYSE: BBY) has hit a new milestone crossing its all-time high on Friday. Best Buy’s (BBY) 35-year impressive performance rides on the backdrop of advances made by the S&P 500 as well as other Wall Street indices. For the first time as a publicly-traded company, BBY stock hit its peak, on two instances reaching $114.25 per share during the trading day.
The retail sector has been one of the massively impacted sectors of the economy hit by the coronavirus pandemic. While many outlets reeled in losses, Best Buy and Amazon.com Inc (NASDAQ: AMZN) are among the few that came out strong. The company had been able to bolster its digital top line in order to serve customers making orders for Television sets, computers, and other digital appliances to survive the menacing lockdowns.
The growth experienced also comes in anticipation of Best Buy’s earnings report. FactSet’s expectations include earning of $1.04 a share on $9.73 billion in revenue. Should this target be met or surpassed, future growth and share price are expected to soar.
Best Buy (BBY) Milestone, Drawn from Years of Consistency
Best Buy is a multinational electronics corporation headquartered in Richfield, Minnesota. It was originally founded by Richard M. Schulze and James Wheeler in 1966 as an audio specialty store called Sound of Music. In 1983, it was rebranded under its current name with an emphasis placed on consumer electronics.
BBY has recorded such milestones enough to place it on investor’s radar since inception. Among the records the retail brand has earned itself includes its naming as the “Company of the Year” by Forbes magazine in 2004, “Specialty Retailer of the Decade” by Discount Store News in 2001. It was also ranked in the Top 10 of “America’s Most Generous Corporations” by Forbes in 2005 (based on 2004 giving), made Fortune magazine’s list of “Most Admired Companies” in 2006, and also came off as “The Most Sustainable Company in the United States” by Barron’s in 2019.
These awards, particularly that relating to BBY sustainability has proven accurate as the company battled COVID-19 and emerges somewhat on the winning side. Best Buy (BBY) debuted on the New York Stock Exchange in 1987 under the BBY ticker symbol and with consistency, it hits its biggest stock milestone of an all-time high share price of $114.25 after 35 years.
Analysts Current Position on BBY
The recent performances of Best Buy have drawn a row of price targets from Wall Street analysts. As reported by Barrons, out of the 27 analysts polled by FactSet who cover the BBY stock, 41% rate it at Buy or the equivalent, 48% rate it at Hold and 11% are bearish. The average analyst price target is $114. The stock was at $116.16 Monday morning, up 1.9%. Today, however, the stock is down over 6%, it is trading at aroudn $110.22.
While Raymond James analyst Matthew McClintock goes all-out bullish on BBY stock adding $35 to his initial call of $100 citing the company’s “best-in-class fulfillment capabilities, a high mix of essential items,” Scot Ciccarelli, RBC Capital Markets’ analyst noted that “Despite strong execution and what we believe are very solid demand trends for technology, we remain officially neutral on BBY shares as we look for a better opportunity to become more constructive on the stock given the future potential pressure on discretionary spending and the sharp rise in Best Buy shares,” his price target was pegged at $99.