Diamonds and Dogs

1/17/16

Best Buy (BBY) looks the best. The big box electronic retailer jumped 11% to a new 52 week high following better than expected earnings. Best Buy easily beat estimates by 15 cents as revenue rose 1.4% to $8.95 billion ahead of estimates as well. The company also guided fourth quarter earnings above consensus.  Better than expected numbers were helped by  an increase of 24.1% year-over-year in e-commerce revenue to $881 million domestically, bringing total U.S. revenue from digital on-line sales to 10.8% vs. 8.8% last year. I guess Best Buy is competing better against Amazon.

Bigger isn't better. Walmart (WMT) beats earnings estimates by 2 cents as revenue was in line and fourth quarter guidance was in-line, but the stock is down 3% as the second worst performing Dow component. Cisco Systems (CSCO), the tech darling from the 1990s, is the worst performing Dow component down 5% today following disappointing earnings.