$BBY a "Best Buy" at these prices

2022年7月15日

Best Buy is looking very attractive at these levels currently trading at a 8 PE ratio with over a 4% dividend yield at a 33% payout ratio. It is currently being priced for flat to declining revenue in the short term. Regardless of this their fundamentals are very strong and financials are very healthy so even in this scenario they will be returning capital to shareholders though dividends and buy backs which they have a very robust balance sheet to support. Their interest expense is near non existent so they will not be negatively from rising rates and will have access to cheap capital if they ever need it. Additionally they have a very high ROIC around 25% while WACC is sub 10% so they are in a very financially good position to take advantage of any growth opportunities.

Technically they are near their bottom channel puncturing the weekly moving averages and is testing a former consolidation area from 2017-2020