12 Cheap Retail Stocks to Buy According to Hedge Funds

9. Best Buy Co., Inc. (NYSE:BBY)

Forward P/E: 14.23

Number of Hedge Fund Holders: 37

Best Buy Co., Inc. (NYSE:BBY) is a retailer that deals in a range of consumer technology products and services. Its operations are divided into two business segments: Domestic and International.

Although the company reported lower-than-expected sales in fiscal Q3 2025 due to the ongoing macro uncertainty in the sector, it drove strong year-over-year gross margin rate expansion of 60 basis points. This growth was attributed to improvement in its membership and services offers. Best Buy Co., Inc. (NYSE:BBY) also boasts a strong balance sheet. It ended fiscal Q3 2025 with $643 million available in cash and cash equivalents, up from $636 million in the prior year period. The company’s operating cash flow also jumped to $561 million, from $290 million in the same quarter last year. This cash generation allowed the company to distribute $202 million worth of dividends during the quarter.

The company is focusing on diversifying its services, particularly through its Geek Squad, and expanding its health segment. These initiatives are expected to strengthen customer relationships and boost margins for the company. It is also focusing on supply chain management and effective inventory management to meet consumer needs. Best Buy Co., Inc. (NYSE:BBY) ranks ninth on our list of the 12 cheap retail stocks to buy now.