Key Takeaways
- Investing in Best Buy and Wayfair is "worth the risk," JPMorgan said in a research note on retailers published Monday.
- Best Buy will likely see strong sales thanks to the Nintendo Switch and back-to-school shopping, analysts said.
- Meanwhile, Wayfair will likely be impacted by tariffs less than investors expect, the research team said.
Best Buy and Wayfair stock offer a healthy balance of risk and reward,ꦬ JPMorgan said.
The companies aren’t amon▨g the safest investments highlighted in a retailer research note, but they are “worth the risk,” JPMorgan said Monday.
Business should pick up at the electronics retailer Best Buy (BBY), beginning in June, when 澳洲幸运5开奖号码历史查询:pre-orders of Nintendo Switch show up in financial records, the note said. The momentum wi🀅ll likely carry over into July as consumers buy computers, tablets and phones during back-to-school shopping, they said.
Best Buy has 澳洲幸运5开奖号码历史查询:integ𓂃rated current tariffs intಌo its guidance, which limits–but doesn’t completely eradicate–risks to its future earnings, JPMorgan said. Sales of non-computer merchandise could remain sluggish, analysts said, concluding that shares are “highly w🥀orth 🐻the risk-reward at this price.”
Shares were recently trading for roughly $67.40—down about 21% so far this year. Best Buy stock began declining in late February amid new tariffs, and has generally been ticking up since early April, when a number of "reciprocal" tariffs were delayed.
Wayfair (W) shares also appear to be undervalued, JPMorgan said. Misconceptions🐼 about how tariffs may impac▨t the company appear to be weighing on its stock, the 🧸note said, adding that Wayfair operates a platform for buying furniture and home goods and d꧋oesn't function like a traditional retailer.
Shares were recently selling for just shy of $41, but remain down nearly 8% this year.