Here’s Why Best Buy Co. (BBY) Fell in Q4

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Growth & Income Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index increased by 2.4% in Q4, reaching a 25.0% gain in 2024. The past two years have been the best for the stock market since the 1990s, with AI excitement driving returns and strong earnings growth. The market’s on-going multiple expansion—the S&P 500 Index currently has its highest multiple this century, excluding COVID years—accounted for about half of 2024’s returns, with the other half coming from robust earnings growth. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

In its fourth quarter 2024 investor letter, Carillon Eagle Growth & Income Fund emphasized stocks such as Best Buy Co., Inc. (NYSE:BBY). Best Buy Co., Inc. (NYSE:BBY) is a specialty retail company that engages in the consumer technology products and services. The one-month return of Best Buy Co., Inc. (NYSE:BBY) was -19.00%, and its shares lost 5.70% of their value over the last 52 weeks. On March 17, 2025, Best Buy Co., Inc. (NYSE:BBY) stock closed at $73.77 per share with a market capitalization of $15.77 billion.

Carillon Eagle Growth & Income Fund stated the following regarding Best Buy Co., Inc. (NYSE:BBY) in its Q4 2024 investor letter:

“Best Buy Co., Inc. (NYSE:BBY) pulled back after its second-quarter earnings release exceeded expectations. Investor sentiment grew tepid over concerns that election outcomes could impact the company’s business. Sales also may have been hindered by a compressed holiday season and a lack of innovative new products.”

Best Buy Co., Inc. (BBY): Among Top Dividend Contenders List

A busy retail store showcasing a wide range of consumer electronics.

Best Buy Co., Inc. (NYSE:BBY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Best Buy Co., Inc. (NYSE:BBY) at the end of the fourth quarter compared to 37 in the third quarter. While we acknowledge the potential of Best Buy Co., Inc. (NYSE:BBY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Best Buy Co., Inc. (NYSE:BBY) and shared the list of best dividend stocks in the consumer cyclical sector. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.