Best Buy Co., Inc. (BBY): Thanks to Government, Big Gains Are Brewing for This Retail Stock!

Recent data shows an overwhelming statistic: More than 20% of all consumers who purchase an electronics product from Amazon first viewed and or tested the same product in store. This practice is also known as “window-shopping” and in the past has made sense with consumers able to save 5-10% (tax) and another 1-3% on merchandise pricing alone. However, now that online stores will only have the 1-3% pricing advantage, consumers may find the advantage to purchase in store favorable to the wait of shipping and the unknown of online shopping.

Conclusion

Based on my research, I believe this new bill will add significant sales to companies such as Best Buy Co., Inc. (NYSE:BBY), possibly half of those who “window shop” at its stores before buying on Amazon.com, Inc. (NASDAQ:AMZN). This is taken from another statistic, one that says 10.86% of all consumers cross-shop Amazon with Best Buy. Thus if 20% of consumers are “window shopping” and 10.86% compare prices then my belief is that up to 50% of those comparing prices will find Best Buy and its “take-home now” product approach favorable to the 1-3% that they “could” save on Amazon. In terms of revenue and fundamentals, this bill could create significant top-line gains for Best Buy Co., Inc. (NYSE:BBY) over the next few years. When you combine this fact with a stock that is already trading at just 0.16 times sales, then there’s reason to believe that big gains are brewing for this retail stock.

The article Thanks to Government, Big Gains Are Brewing for This Retail Stock! originally appeared on Fool.com.

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