NEW YORK (TheStreet) -- Best Buy Co. (BBY) - Get Report stock is rising 1.30% to $31.89 in early afternoon trading on Monday, after the retailer said millions of customers shopped in Best Buy's stores and online during Black Friday weekend.
Shoppers bought hundreds of thousands of TVs and millions of entertainment gifts, the Richfield, MN-based retailer said in a statement on Sunday.
Best Buy also reported that customers bought twice as many wearables as they did a year ago.
In general, about 103 million people shopped online over the weekend, and 121 million shoppers plan to shop on Cyber Monday, according to the National Retail Federation.
Separately, TheStreet Ratings team rates BEST BUY CO INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate BEST BUY CO INC (BBY) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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 0.52, displays a potential problem in covering short-term cash needs.
- BEST BUY CO INC has improved earnings per share by 15.6% 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 two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, BEST BUY CO INC increased its bottom line by earning $3.53 versus $2.00 in the prior year. For the next year, the market is expecting a contraction of 25.8% in earnings ($2.62 versus $3.53).
- BBY, with its decline in revenue, slightly underperformed the industry average of 4.5%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: BBY
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.