Best Buy is a technology retailer. Co. has two segments: Domestic and International. The Domestic segment is comprised of the its operations in all states, districts and territories of the U.S. and its Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen and Home, TechLiquidators and Yardbird and the domain names bestbuy.com, currenthealth.com, lively.com, techliquidators.com and yardbird.com. Co.'s International segment is comprised of all operations in Canada under the brand names Best Buy, Best Buy Mobile and Geek Squad and the domain name bestbuy.ca.
When researching a stock like Best Buy, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from BBY Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for BBY stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the BBY 200 day moving average ("BBY 200 DMA"), while one of the most popular "shorter look-backs" is the BBY 50 day moving average ("BBY 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Best Buy. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the BBY 200 DMA and the BBY 50 DMA, we get a moving average convergence divergence indicator ("BBY MACD"). The BBY MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis