Best Buy Hones the Edge

Even though its stock is up 8% this year, Circuit City's (CC Quote) decision in March to reject Highfields Capital's buyout offer hadn't looked like a good one until last week, when its shares finally nudged above $17.

The stock's support will be tested this Friday, when Circuit City reports earnings. Expectations are low. The consensus of Wall Street analysts is for the electronics chain to lose 2 cents a share, according to Thomson First Call. Worse than that and the stock could take lumps.

It's the other way around at competitor Best Buy(BBY Quote), which has seen its stock fall 1% this year but has a decent shot at beating the 30-cent-per-share consensus when it reports Tuesday. ...