Cramer: Best Buy Is Still A Good Buy

Just five years ago, Best Buy Co Inc BBY was considered to be a "showroom for Amazon.com, Inc. AMZN," whose days as a viable retailer are numbered, CNBC's Jim Cramer said during his daily "Mad Money" show. Fast forward to today and the company "has come roaring back" and patient investors saw their investment quadruple.

Yet Best Buy's stock has proven it can't rise indefinitely and suffered its first notable pullback since January 2015, Cramer noted. Investors found the company's recent earnings report to be concerning enough to warrant a 12 percent sell-off. Granted, the stock began to recover after being hard hit and is still down $5 per share from its highs -- which makes it an attractive buy at current levels.

Investors were particularly scared with what Best Buy Chief Financial Officer Corie Barry said during the post-earnings conference call. The executive used many "red-flag words," especially "competitive" and several variations.

"Honestly, though, I think this was much ado about nothing," Cramer said. "We already knew that electronics, and gaming hardware in particular, was a competitive space. We already knew the holiday season can get really promotional. None of it was revelatory."

Perhaps investors merely forgot about the fact that Best Buy has been not only competing in the highly competitive space, but it has been thriving over the years. The company's reputation as being a high-quality stock that suffered a "marked down" stock, but for all the wrong reasons.

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