Is This Tech Retailer a Value Trap?


The following video is from today's MarketFoolery podcast, in which host Chris Hill, along with Jason Moser and Joe Magyer, discuss the latest business news. Shares of hhgregg fell more than 35% today after the company cut its full-year earnings forecast. With shares at a three-year low, does this represent a value play for investors or a value trap? In this segment, the guys analyze the headwinds facing both hhgregg and fellow big-box retailer Best Buy, the shift in market share to companies like Apple,, and Costco, and why investors should avoid the temptation of what appears to be a bargain stock price.

Are individual investors going to be able to retire on hhgregg's stock? The jury's still out on that one, but Amazon is one of the stocks featured in The Motley Fool's new report "3 Stocks That Will Help You Retire Rich." The report describes the savings habits you need to build long-term wealth and analyzes three stocks to help you build a smarter retirement portfolio. The report won't be available forever, but you can get instant access to it simply by clicking here -- it's free.

At the time thisarticle was published Chris Hillowns shares of The Motley Fool owns shares of Apple, Costco Wholesale,, and Best Buy.Motley Fool newsletter serviceshave recommended buying shares of, Apple, hhgregg, and Costco Wholesale and creating a bull call spread position in Apple. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.