Score 7.9 (out of 10): BEST BUY CO INC sets up for -8.1% drop in 1 month

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What’s Going On Here?

Best Buy on Wednesday cut its forecast for the year and the second quarter, citing weaker demand as consumers feel pressure from inflation.

Why Now?

BEST BUY CO INC has triggered a new technical analysis ‘buy the dip’ signal. During similar occasions, BEST BUY CO INC shares had a median return of -8.1%, over the following 1 month – based on 10 historical occasions with 8 of those showing negative returns (80%). This sell signal for BEST BUY CO INC received a high score of 7.9 (out of 10). This insight was generated on 2022-April-28 with last price of 76.38.

What’s This Company About?

BEST BUY CO INC is in the Retail-Consumer Electron business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. ‘Wall Street’ analysts think the stock price will be worth 0% (average). Ticker symbol: BBY US.

What’s My Risk / Reward and Time Horizon?

We found 1 month to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 70.22 (-8.1%) has been reached. Based on BEST BUY CO INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 80.28 (last price at 76.38), which is equivalent to a 5.1% rally.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

-18.9% (May-2022), -7.4% (February-2022), -28.4% (November-2021), -4.5% (August-2021), -2.8% (April-2021), -8.7% (January-2021), -14.9% (November-2020), 2.3% (September-2020), 8% (May-2020), -14.9% (January-2020).

Historical Chart:

Summary:

NameBEST BUY CO INC
ViewUp
Star (1 to 10)7.9
Target-8.1%
Time1 month
Hit Rate80%

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