Hedgeye CEO Keith McCullough is adding Best Buy (BBY) to the short side of Investing Ideas. Below is a brief note.
Looking to sell some names on green as insiders at the company do? Retail analyst Brian McGough has been right on being short Best Buy (BBY)...
Here's a summary excerpt on why from his popular Retail Pro research product:
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This name remains a Best Idea Short, as we think sales slow in 2H and 2022, taking margins down with it – in particular due to lower attachment of warranty rates (which accounts for 40% of EBIT and are tougher to sell with the switch to digital from in store). Consensus margin expectations remain too high across durations, and our earnings expectations for next year are 20% below consensus... |
Sell on green,
KM
