Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics retailer Best Buy (NYS: BBY) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Best Buy's business and see what CAPS investors are saying about the stock right now.
Richfield, Minn. (1966)
Computer and electronics retail
CEO Brian Dunn (since 2009)
Return on Equity (average, past 3 years)
$1.2 billion / $2.2 billion
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 19% of the 3,458 members who have rated Best Buy believe the stock will underperform the S&P 500 going forward.
Earlier this year, one of those Fools, ValueOfTime, summed up the bear case for our community:
I love going in to Best Buy to slobber over all the cool things that are arriving at my doorstep tomorrow compliments of Amazon.com's free 2-day shipping. Best Buy is good for 4 things: Their comical "tech support", The show and tell that a brick-and-mortar store provides, their Geek Squad computer repair (for people who don't know how to use Google search) and the convenience of a nearby electronics store if you need a tech accessory really fast. The amount of tech-savvy people in the world will continue to increase and the amount of tech not-savvy people (e.i. Best Buy shoppers) will decrease. Now would be a good time for Best Buy to buy some of its own "black tie protection" because no warranty covers the damage this company is/will continue to suffer.
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Apple and Wal-Mart. Motley Fool newsletter services have recommended buying shares of Apple, Amazon, and Wal-Mart, as well as creating a bull call spread position in Apple and a diagonal call position in Wal-Mart. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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