Trade-Ideas LLC identified

Best Buy

(

BBY

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Best Buy as such a stock due to the following factors:

  • BBY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $209.4 million.
  • BBY traded 262,773 shares today in the pre-market hours as of 8:53 AM.
  • BBY is up 2.6% today from yesterday's close.

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More details on BBY:

Best Buy Co., Inc. operates as a retailer of technology products, services, and solutions in the United States and internationally. The stock currently has a dividend yield of 3%. BBY has a PE ratio of 13. Currently there are 8 analysts that rate Best Buy a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for Best Buy has been 5.7 million shares per day over the past 30 days. Best Buy has a market cap of $10.5 billion and is part of the services sector and retail industry. The stock has a beta of 1.28 and a short float of 11% with 4.12 days to cover. Shares are up 1.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Best Buy as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Specialty Retail industry average. The net income increased by 16.8% when compared to the same quarter one year prior, going from $107.00 million to $125.00 million.
  • The current debt-to-equity ratio, 0.35, 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 0.55, displays a potential problem in covering short-term cash needs.
  • BBY has underperformed the S&P 500 Index, declining 21.40% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Net operating cash flow has decreased to $155.00 million or 45.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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