Best Buy opened this week at 114.93 and it reports earnings this week. The PE or Price/ Earnings ratio current reports 16.80 and 37.11 for the S&P’s and 25.56 one year ago. The S&P at 37 PE is exorbitantly high and ready for a deep fall.
The time to buy Best Buy was March 2020 when the PE ratio was 10.38 and the stock traded at 98.24. Today, 16 points represented profit.
The Rule for stock trading is long low PE ratio stocks and short high PE Ratios. Best Buy at 16.80 is either high or rangebound but not a trend. The question for Thursday is can price match to earnings at 16.80.
Last quarter, Best Buy achieved PE Ratio highs at 17.77 April 21 when Best Buy stock traded 121.56 then dropped to 117.47.
Ex dividend for Best Buy was Mar. 17. Next dividend date should report in June. Ex Dividend dates are not only profitable but profits come quickly by trading Dividend plays.
Long Best Buy lows at 114.35 and highs at 115.51. Long the lows and short the highs. Due to the S&P PE ratio at 37 and Best Buy at 16.80, the suggested strategy for Best Buy is short