The future of Sears is going south and quickly. The recent articles have given us reason to believe that even the CEO is pointing to the end of a brand many have known and loved. With the selling of their signature brand Craftsman, they have been waving the white flag. If you’re a potential investor, there are many different options out there and I would certainly by pass this company as a whole. It is not worth the time to research and understand how the company is doing because we can all see on the surface level.
Taking a look at the chart using the monthly time frame, we can see that price has just tanked over the years and has no signs of rounding back to their previous highs. Sure there may be good news here or there, but the odds are there won’t be any life saving news. Of course you can’t take the information straight from the chart, but if you read into the fundamentals, you will understand why price is where it’s at.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Best Buy income statement, its balance sheet, and the statement of cash flows. Potential Best Buy investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Best Buy investors may use each financial statement separately, they are all related. The changes in Best Buy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Best Buy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Best Buy The
future earnings power of Best Buy involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Best Buy factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Best Buy
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Best
expected earnings.
Best Buy Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Best Buy previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Best Buy Gross Profit growth over the last 10 years. Please check Best Buy's
gross profit and other
fundamental indicators for more details.
Risks
For a full list of risks, you can take a look at the company’s recent 10-K report which will have the risks and details following them, but there are a couple to keep in mind while completing your research. First, the company may not be around long enough for you to reap a return on your investment. The struggling company has sold properties and closed stores in a desperate attempt to keep the company going. Secondly, the risk is your investment could hit zero and you would then loss everything. This doesn’t happen to often to these large and well established brands, but when they fail to adjust to changing trends, this is what ultimately happens.
Conclusion
Overall, I would stay far away from this company until they can prove they have either fixed the problem. Instead, look at healthier competitors and find one that could benefit your portfolio. If you still have questions after the fact, reach out to an investing professional as they can help point you in the right direction.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectNathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Best Buy Co. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com