By Valuentum:
With online competitors taking an ever-increasing marketshare, it's hard to see how Best Buy (BBY) can reinvent itself to maintain its status as the global leader in consumer electronics. Still, just because a firm has had deteriorating fundamentals doesn't necessarily make it a bad stock (or mean it will be a terrible stock going forward).
For example, look at our track record as it relates to our fair value estimate on Best Buy. You'll see our fair value in the center column and the price of the stock at the time that our fair value was issued. For the past two years, we've been pounding the table on Best Buy's undervaluation! Best Buy is now trading at nearly $40 per share!
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We think it's pretty amazing how a disciplined systematic process like the our Value Rating that is focused on cash flow helps investors see clearly
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