NEW YORK (TheStreet) -- If you've blinked, chances are you've missed one of the better turnaround stories in retail -- Best Buy (BBY). Although the electronics retailer is not back to its robust operating performances from a decade ago, Best Buy has done what many thought was impossible: escaping the death-grip of e-commerce giant Amazon (AMZN).
There are several reasons why Best Buy stock was in the bargain bin, as we said Wednesday, ahead of Best Buy's first-quarter earnings results. And the shares won't be cheap for long. There's evidence of improvement everywhere in Best Buy's numbers.
Now with Best Buy stock shooting up as much as much 8% in two days, owing to a better-than-expected fiscal first-quarter 2016 report, it's time to revise projections upward for Best Buy stock. The reason? The risk vs. reward now tips heavily on the positive side.
One reason to have been concerned about Best Buy -- aside from the threat of being bested by Amazon -- is that April retail sales data showed that consumers didn't spend as much as the market had hoped. That, along with fears that the economy is growing at a slower rate, implied that retail spending in the months and quarters ahead would be equally tepid.
But there was little evidence of this weakness in Best Buy's first-quarter results. The Richfield, Minn.-based electronics retailer credited its strong numbers to higher volume for things like large televisions, mobile phones and major appliances, which the company said helped offset weakness in products like tablets and computers.