Breakout in the Charts for Best Buy (BBY)?

Best Buy Co. (BBY) is approaching a key resistance level.  If this level is surpassed a breakout could occur…

Best Buy Co. (BBY) is one of the largest consumer electronics retailers in the U.S. Its stores provide computing and mobile phones, home theater products, gaming hardware and software as well as appliances such as dishwashers, ovens, refrigerators, and blenders.

The company is focused on accelerating online sales growth, improving its multichannel customer experience, and developing new in-store and in-home service offerings. While BBY saw increased demand for its products and services in the final quarter of 2020, management expects margins to decrease due to higher supply chain costs.

BBY had $5.5 billion in cash on hand as of the end of January. This compares to only $100 million in short-term debt. The company has seen steady earnings and revenue growth over the past year. Analysts expect sales to rise 24.1% year over year during the current quarter. Earnings are forecasted to surge 92.5% during the same time period.

BBY’s stock is currently undervalued with a trailing P/E of 17.66. Though the stock has been surging higher since early March. This has resulted in a Momentum Grade of A in our POWR Ratings system and represented in the chart below.

Take a look at the 1-year chart of BBY below with added notations…

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