Best Buy’s Stock (BBY) At New Highs On Strong Earnings

Best Buy (NYSE:BBY) creeping higher… and then, boom!  They crushed earnings and the stock price soared.

Best Buy hasn’t been the most popular stock over the past few years, but things change. Especially as businesses evolve to the changing tech and e-commerce environment.

Here are a couple things that stood out to me that make this a good story.

• Virtual Reality gaming is here.  It’s not what it’s going to be, but it’s here.  So where do you go to check the numerous options out?  Best Buy.  They haven’t had a foot traffic driver like this in years and years.  It’s going to take a few years for mass adoption of V/R, so this is a huge opportunity to BBY to change that feeling you get when walking into stores.

• Online sales were up 25%.  For a company moving products like that, that’s a huge number that will catch investors’ eyes.  We should note that when a retail location sells out of a product, they just order it from their online warehouse for you and eat the shipping costs.

As well, the technicals are strengthening. The strong breakout will likely see a retest at some point, but traders will now look for follow through.

Best Buy (BBY) Weekly Stock Chart

Best Buy’s stock price is now at all-time highs after breaking a longer-term declining resistance level as well as an intermediate-term resistance level.  The move out of a 3 year consolidation was our clue – this suggests a move to the mid-high 50s are on the table over the coming months.

Best Buy shares are pretty well positioned here.  If management can execute, this could be a killer stock to own in 2017.

Thanks for reading and good luck out there.

Twitter: @ATMcharts

Read more from Aaron on his blog NorthstarTA.

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.