Shares of Best Buy Co. Inc. (NYSE:BBY) have fallen 12% in the past month. With the stock trading at around $100, it's the lowest that it's been since early August. The decline comes even as the retailer beat expectations for Q3 when it reported its latest results in November. Best Buy achieved an incredible same-store sales growth of 23% while its U.S. online sales skyrocketed 174% with people shopping more online during the pandemic.
Investors got spooked, however, when the company said that the fourth quarter won't be as strong and that higher shipping costs will make for a soft finish to the year. However, the selloff may be a bit overdone as the stock is now sitting right around oversold territory with a Relative Strength Index (RSI) of 30. When the RSI falls below 30, a stock is considered oversold and it could be a sign that there may have been too much selling of late.
It's an opportunity for opportunistic investors to scoop up this top retail stock which has been doing well during the pandemic at a reduced price. Trading at a forward price-to-earnings ratio of 14, the stock is a decent value buy that’s been generating tons of growth of late.
And with a quarterly dividend of $0.55, investors who buy today can also secure a decent yield of 2.2% that can pad their overall returns. Even with the recent dip in price, Best Buy shares are up around 15%. This is a great stock for both value and income investors to consider adding to their portfolios today.
