Jim Cramer Latest Stocks: 23 Stocks He Just Talked About

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

Number of Hedge Fund Holders In Q3 2024: 37

Best Buy Co., Inc. (NYSE:BBY) is a technology and appliance retailer that sells smartphones, computers, kitchen appliances, and other associated products. The retailer is dependent quite a bit on consumer spending strength as its product catalog is pricier than other retailers. Lower consumer spending has driven Best Buy Co., Inc. (NYSE:BBY)’s narrative throughout 2024 as the firm has turned to margin-unfriendly promotional pricing and cost efficiencies to drive bottom-line profit. This strategy yielded results in August when the stock soared by 15% when it upgraded its fiscal year EPS guidance ranging between $6.10 and $6.35 from an earlier $5.75 to $6.20. However, these are simply stop-gap measures as Best Buy Co., Inc. (NYSE:BBY) fell by 9% in November after its US comparable sales shrank by 2.8% for a hefty miss of analyst estimates of 0.28%. Here’s what Cramer said about the retailer:

“Street’s turning positive on Best Buy which has been a decent stock for me but uh people are talking about Evercore’s got a good rationale, holiday survey is looking good, shopping indicators are positive. Now this is a company that, uh, when they reported their quarter, did not give you the kind of guidance that I would have wanted, and the stock came all the way back down. It went up back to a hundred. But if the really optimistic move says the prices are similar to Amazon, maybe there’s a chance. I’m going to talk about it tomorrow in my investing club meeting, and Carl I’m basically saying listen the AI PC did not work out. It does need [inaudible] slower, appliances are not selling as well. But this is another example where you would read they’re and how they’re doing, and [LOOKING] forward . . the headwinds you would say look, they need to cut to get to, there’s homes to be built and there’s stuff to be, um homes to be remodeled and that’s really how they make the money. So this is two positive pieces on BestBuy, surprised that we can get two.

“I like Cory Barrett very much but we did get let down by the AI PC which is proving so far to be just a plain out disappointment.”