The company seems to have located a strategy for not only survival, but also a bold recovery. Shares are at their highest levels in years.
The company's third-quarter results were healthy. U.S. same-store sales increased 1.8%, topping analysts' expectations.
Growth in the company's home theater, mobile phones, wearables and connected home divisions helped offset a fall in gaming.
Best Buy's biggest leads were in its e-commerce segment where online sales were up 25% in the U.S. during the quarter.
The company also provided above-consensus guidance for fourth-quarter earnings per share.
Shares obviously witnessed a solid rally, even as expectations picked up.
After the spike, the stock is now trading at a price-to-earnings ratio of 14, based on estimated earnings for the fiscal year that ends in January 2018.
That doesn't seem exorbitant if you look at Amazon, which has a forward P/E of 87, and Walmart, which has a forward P/E of 16, but historically the stock appears to be fully valued.