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Buy Rating - Best Buy: High-Quality Stock, Low Valuation
As many may know, Best Buy $BBY is a consumer electronics company that sells consumer tech products and services in North America. We are bullish on the stock.

BBY may seem like a boring business, and it is, to be honest. But, that doesn’t mean you can’t make money off of it.

From one of its low points in 2013, BBY stock has returned close to 1,000% compared to about 250% for the S&P 500, as you can see below.

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Of course, those results are from a low point; you’ll never catch an exact low. Also, BBY was a different business back then (declining revenue, lower profitability). However, in the past few years, it has started to grow steadily while increasing its return on invested capital.

It even has higher returns on invested capital than many investors’ favorite mega-cap tech stocks like Alphabet and Meta Platforms (Facebook).

Currently, Best Buy is about 29% off its highs. So, we could be closer to a low point than a high point. This is especially true when considering its already-low valuation (about 10x P/E ratio) and expected future growth. This isn’t like one of the unprofitable, high-flying tech stocks that got beat up after increasing 5x in a year.

This is a real company with real earnings that has been able to remain competitive in a world where companies like Amazon exist.

Read our full TipRanks linked here to see why we like BBY stock at its current valuation! (we're not allowed to post the full article here)

Also, feel free to check out our Substack here
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