Best Buy Co Inc (NYSE:BBY) Headed to $40

Best Buy Co Inc (NYSE:BBY) Headed to $40

Best Buy Co Inc (NYSE:BBY) Headed to $40

Excluding special items, the company earned 57 cents per share in the second quarter ended on July 30. Analysts on average had expected 43 cents, according to Thomson Reuters I/B/E/S.

Sales at established stores rose 0.8 percent. Analysts had expected a 0.60 percent fall, according to research firm Consensus Metrix.

Best Buy said sales rose for home theater systems, major appliances and computing products, as well as smartwatches, but declined for mobile phones and gaming.

Best Buy also forecast revenue of $8.8 billion to $8.9 billion for the third quarter, while analysts on average were expecting $8.77 billion.

The company expects earnings of 43 cents to 47 cents per share, compared with Wall Street forecasts of 45 cents.

Revenue rose slightly to $8.53 billion in the second quarter, snapping a three-quarter streak of declines. Analysts on average had expected $8.40 billion.

Best Buy said net income rose to $198 million, or 61 cents per share, from $164 million, or 46 cents per share, a year earlier.

HEFFX Technicals

Overall, the bias in prices is: Upwards.

Short term: Prices are heading to $40.

Intermediate term: Prices are trending.

By the way, prices are vulnerable to a correction towards 32.33.

The projected upper bound is: 44.20.

The projected lower bound is: 33.54.

The projected closing price is: 37.87.

BEST BUY CO INC closed up 0.210 at 32.800. Volume was 84% above average (neutral) and Bollinger Bands were 24% narrower than normal.

Open High Low Close Volume___
32.630 33.590 32.490 32.800 2,145,896

Technical Outlook
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 33.75 31.90 31.12
Volatility: 29 26 39
Volume: 1,186,078 1,100,615 1,257,379

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

BEST BUY CO INC is currently 5.4% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of BBY.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BBY.N and have had this outlook for the last 32 periods.

best buy photo
Photo by JeepersMedia
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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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