Buy, Sell, or Hold Best Buy on Today's Massive Dive?
Best Buy just released some chilling data today from the recent holiday shopping period. U.S. same store sales were down nearly 1% indicating that even the seemingly reborn specialty retailer's efforts to drive sales via promotion didn't pay off. In fact, this only hardened the blow as management lowered guidance for Q4 operating profit as well.
While Best Buy has made significant strides over the past year to improve its fortunes, it's difficult to see the increasing level of competition ending any time soon. With Amazon.com as a major competitor, there's no wonder to Best Buy's strategy for righting its ship. Take a look at management's first three bullet points for its Renew Blue turnaround plan to see what I mean :
Lower cost structure
Grow online channel
Innovate for multi-channel customer
This sounds like all the things that Amazon already does well to beat Best Buy to the punch. The key question now for shareholders who have rode the company's stock to incredible gains over the past year is should they double down on the massive dip, or should they sell now to protect their gains? Learn more in the latest video below from the Motley Fool's consumer goods team.
While you're contemplating how to protect your returns from 2013, don't miss this 1 must-own stock for 2014
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.
The article Buy, Sell, or Hold Best Buy on Today's Massive Dive? originally appeared on Fool.com.
Fool contributor Mark Reeth has no position in any stocks mentioned. Michael Finarelli has no position in any stocks mentioned. Sean O'Reilly has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com. 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 Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.