Buy Best Buy on 15% Drop

Best Buy dropped over 15% after releasing Q3 earnings. We are more inclined to buy more than use move as a sell signal. The quarter was good but let us talk about the bad news first. Firstly, same store sales were only up 2% which was a little light in our opinion. While Best Buy was coming off of tough comparable Q3 last year when sales were robust during mid-pandemic shutdowns, we still felt the company could post higher same store sales as the economy opens up. Secondly, margins were down on increased theft and of course supply chain issues! I do not recall ever being concerned about theft as an issue, but unfortunately Best Buy is not the only company facing increased theft. Just yesterday a group of 80 people organized to rob Nordstrom in San Francisco. The group of 80 simultaneously robbed the location then jumped in getaway cars waiting outside. I can’t believe this is the world we live in now, but it happened. Despite the theft and supply chain issues, there are just too many positives with Best Buy right now and we would be buying the stock on the pullback. Watch our video for more.

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