Best Buy (BBY) Showing Unusual Social Activity Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Best Buy as such a stock due to the following factors:
- BBY has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 74.16 mentions/day.
- BBY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $200.4 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on BBY:
Best Buy Co., Inc. operates as a multi-national, multi-channel retailer of technology products in the United States, Canada, China, and Mexico. The stock currently has a dividend yield of 2%. BBY has a PE ratio of 13.3. Currently there are 13 analysts that rate Best Buy a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Best Buy has been 6.1 million shares per day over the past 30 days. Best Buy has a market cap of $13.5 billion and is part of the services sector and retail industry. The stock has a beta of 3.08 and a short float of 10.3% with 4.88 days to cover. Shares are up 0.5% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Best Buy as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 150.00% and other important driving factors, this stock has surged by 45.42% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- BEST BUY CO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, BEST BUY CO INC turned its bottom line around by earning $1.98 versus -$0.81 in the prior year. This year, the market expects an improvement in earnings ($2.45 versus $1.98).
- The current debt-to-equity ratio, 0.36, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that BBY's debt-to-equity ratio is low, the quick ratio, which is currently 0.52, displays a potential problem in covering short-term cash needs.
- The gross profit margin for BEST BUY CO INC is rather low; currently it is at 24.45%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.14% trails that of the industry average.
- Net operating cash flow has declined marginally to $287.00 million or 5.90% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Best Buy Ratings Report.
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