Early Amazon Victim Near A Buy Point; Jobs Report On Tap: Investing Action Plan – Investor's Business Daily

Here’s your Investing Action Plan for Friday: what you need to know as an investor for the coming day.

Jobs Report, Rig Count

The Labor Department’s employment report is due out at 8:30 a.m. ET. Economists expect an increase of 164,000 in private jobs and 170,000 in nonfarm payrolls. The unemployment rate is expected to be flat from the prior month at 4.3%.

XAutoplay: On | OffThe Baker-Hughes rig count comes out at 1 p.m. ET. Last week’s count ended 23 consecutive weeks of gains.

Stocks To Watch: Best Buy

With the market under pressure and leading stocks retreating, investors should be cautious. But take a look at Best Buy (BBY). The consumer electronics chain was once dismissed as an Amazon showroom, a place where people would check out TVs and other gear in person before actually buying on Amazon (AMZN). Best Buy adapted its strategy, which has boosted its fundamentals over the last several years, sending shares higher.

Best Buy shares are working on a flat base with 62.05 entry point as the electronics retailer continues to hold its own vs. the e-commerce giant

In late May, the company reported far-better-than-expected earnings and sales growth, with 60 cents in per-share profit topping views by 20 cents and revenue of $8.53 billion handily beating forecasts for $8.27 billion. The results topper, driven by strong results in gaming, mobile and other areas, sent shares up 21.5% that day to a new intraday high of 61.95.

Best Buy shares fell 1.4% to 57.35 in morning trade in the stock market today. Amazon fell 1% to 962.01, finding resistance at its 50-day line.


IBD’S TAKE: For all of Amazon’s heft, Best Buy remains the consumer electronics market leader by revenue. Find out how the old-school electronics retailer is punching back against the e-commerce behemoth: “The Top Dog Vs. The Big Threat.”


Amazon’s consumer electronics sales growth has eclipsed Best Buy’s — 28.1% to Best Buy’s 3.8% growth in 2015, according to Deutsche Bank, citing Twice magazine — but that single-digit gain marked a swing to positive territory following years of sales declines.

Amid the broader retail market’s ongoing battle against Amazon (see: the Whole Foods Market (WFM) acquisition pummeling grocers), Best Buy’s growth is giving some investors hope for the future of retail.

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