Left for dead big box retailer Best Buy has shown signs of life this year. They had a decent holiday season and their earnings announcement pumped the share price of BBY out of a nice base. Since then price has drifted higher along with the rest of the market.
The advertising team at Best Buy is putting out a funny ad during the Super Bowl. As simple as it sounds, it is an opportunity to reintroduce consumers to the brand. You nacho chompers love funny commercials. Pair this with the curious business model of their online rival Amazon and we could begin to see money rotate into this name. It’s beaten down and people love a comeback story.
The daily chart shows price behaving in a way I particularly like. I would like to see shares of BBY continue to come in and enter the hon3y hole. I’m always looking to find the first pullback after a stock changes directional trend. It offers the highest probability and also has the greatest profitability potential. Of course, the overall market needs to remain constructive for these setups to work, but keep Best Buy on your radar leading into this weekend’s game.
Oh, and the Niners.
______