Is Best Buy Co., Inc. (BBY) a Sucker’s Bet?

BBY Cash from Operations TTM data by YCharts.

When I look at the fact that Best Buy is struggling strategically, it doesn’t have a consistent draw to its stores the way Target and Wal-Mart do, and its cash flow is plummeting, I think the discount retailers are a better buy.

Foolish bottom line
I think Best Buy Co., Inc. (NYSE:BBY) is dying a slow death unless it finds a way to differentiate itself in retail. Services could be that differentiator, but right now the company isn’t leveraging that well enough and it’s led to a rapid decline in profits and cash flow. That makes the stock a bad buy long term.

The article Is Best Buy Stock a Sucker’s Bet? originally appeared on Fool.com.

Fool contributor Travis Hoium manages an account that owns shares of Apple. Travis Hoium is short shares of Amazon.com. The Motley Fool recommends and owns shares of Amazon.com and Apple.

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