The electronics chain is in a good position to stand up to the world’s largest online retailer.
Amazon.com (symbol AMZN) is projected to account for one-half of all internet-based U.S. retail sales by 2021, according to brokerage firm Needham & Co., up from about one-third of sales in 2016. The threat to competitors in the retail space has become so dire that a “Death by Amazon” index that tracks the stock prices of 54 retailers sits near a four-year low, according to research firm Bespoke Investment Group, which compiles the index.
Yet, there are a few big retailers that are finding ways to thrive despite the Amazon onslaught. Electronics chain Best Buy (BBY) is one of them. Here’s why its stores and its stock should stand up to competition from Amazon. (Share prices, returns and other data are as of April 25.)
A few years ago, Best Buy was written off as a company that “didn’t need to exist” in the age of…