Why to Buy Best Buy

Shares of Best Buy BBY are trading up today following an EPS beat on its first quarter 2014 earnings report. Additionally, the company's board has announced a regular quarterly dividends of $0.17 payable on July 3, 2014 to share holders on record as of June 12, 2014. Company president and CEO Hubert Joly commented, "This quarter reflects continued progress in our Renew Blue transformation," Joly continued,"We made progress against our three business imperatives, which are to improve our operational performance; build our foundational capabilities to unlock future growth strategies; and leverage our unique assets to create a differentiated value proposition that is meaningful to our customers and our vendors." Analyst at B. Riley, Deutsche Bank, and Jefferies all have Best Buy rated as a Buy. The sentiment among these firms is that an improving gross margin percentage, high performance in ecommerce, improved cost controls are the primary factors driving the stock. Jefferies analysts expressed approval for Best Buy management saying, "We like this management and the work they're doing to make a tough business better," the analysts continued, "Arguably, it hasn't all come together quite that way yet, but we see the potential." Deutsche Bank made note of Best Buy's deceleration in domestic comps on a two year basis, but the firm sees this as a result of industry trends not issues of market share. Moreover, Deutsche Bank wrote, "it appears as if Best Buy is taking market share, and online in particular, which was up 29 percent for the company." Analysts at B. Riley believe that continued margin benefits will more than offset the "modest pressure" expected to remain on the company's near-term sales and suggest that shares will receive upward momentum from raised consensus estimates.