Jim Cramer’s Game Plan: 13 Stocks in Focus

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

Number of Hedge Fund Holders: 37

Cramer called Best Buy Co., Inc. (NYSE:BBY) “too fraught” but also pointed out that since there aren’t many expectations from the company, any good news will be well-received.

“Now we’ve seen a bunch of retailers’ reports not sweating numbers yet in many cases, their stocks still roared. Meanwhile, others like Target get clubbed like baby seals. It’s treacherous to start buying these now because many of these stocks have run mightily in the last few days… Is Best Buy still a category killer? We trimmed some of our position for the Charitable Trust this week after a big gain because we listened to tales of woe that we got from Home Depot and Lowe’s. This one is what I call too fraught. Then again, the shorts are on the ride and no one really expects much from Best Buy. So if it gives us anything good at all, then it’s to the moon…”

Best Buy Co (NYSE:BBY) is a retailer that sells a wide range of technology products, including computing devices, mobile phones, consumer electronics, appliances, entertainment items, and other goods. As per the company’s CFO, Matt Bilunas’ comments, the company adjusted its annual comparable sales guidance for FY25 and expects a decline of 1.5% to 3.0%.

This revision follows the earlier projection for comparable sales, which suggested a trend towards the midpoint of the guidance range. For the third quarter of FY25, the company anticipates a comparable sales decrease of around 1.0%, and non-GAAP operating income for the quarter is expected to be approximately 3.7%. During the last quarter’s earnings call,  management provided insights into current consumer behavior, noting that shoppers are particularly focused on finding value during sales events.

At the same time, customers remain willing to spend on high-priced products when necessary or when new, compelling technology becomes available. Despite these spending patterns, Best Buy Co (NYSE:BBY) management commented that they have not observed any significant shifts in consumer behavior that would indicate increased caution in purchasing.