Best Buy’s (NYSE: BBY) shares recently jumped significantly. In the most recently reported earnings, EPS topped analyst expectations at $1.20. However, revenue fell short of expectations, coming in at $8.85 billion against the consensus estimate of $8.97 billion. It is hard to celebrate the results of a company with revenue challenges. Best Buy is a good dividend stock.
After the recent jump, Best Buy shares are up 14% in the last year, compared to the S&P 500 at 25%. The stock of nemesis Amazon is up 45% during the same period.
Amazon (NASDAQ: AMZN) has threatened Best Buy’s revenues for over a decade. Millions of shoppers found it easier to purchase consumer electronics online. Even with Bestbuy.com’s success, its breadth is far short of Amazon.com’s.
Amazon sells much more than electronics, but its reach is massive. Its North American revenue in the most recent quarter was $86.34 billion, compared with $76.88 in the year-ago period.
Among Best Buy’s primary disadvantages is that it has 1,051 stores in the US. This carries rent, personnel, and, more recently, the theft that has troubled all major retailers.
Best Buy is not alone. For years, Amazon has been viewed as taking sales from every major retailer in the country. This has injured several of these stock prices, and Best Buy is no exception.
Smart Investors Are Quietly Loading Up on These “Dividend Legends”
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.
The post Amazon Stock Crushes Best Buy appeared first on 24/7 Wall St..