Best Buy is a US consumer electronics retailer and investors and has been fearing that the company would print dire results this month. Since Walmart and Target’s earnings investors have been fearing that the US is heading for recession as consumer discretionary spending is reduced.
However, Best Buy’s results provided some relief. Yes, rising wages and supply-chain costs had pressured profit expectations, but they have not gone too far beyond projections. Furthermore, the sales of key electronic goods are expected to pick up in the second half of the year according to CEO Corie Barry. Investors were relieved. So, will Best Buy’s key seasonals come into play this year?
Over the last 10 years, Best Buy has gained 7 times between May 26 and July 01. The average gain has been an impressive 7.05% and the average loss has been -0.68%. Does this make Best Buy a good stock to invest in for the next few weeks? Or will US recessionary fears grow and send the stock lower?
Major Trade Risks: The major risks are from a US recession prompted by an aggressive Fed hiking interest rates into slowing growth.
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