5 Cinderella Stocks to Sell Before Midnight Strikes

These big 2013 winners are due for a 2014 disappointment

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5 Cinderella Stocks to Sell Before Midnight Strikes

Best Buy (BBY)

BestBuyLogo e1297955683480 5 Cinderella Stocks to Sell Before Midnight StrikesSector: Specialty retail
Year-to-Date Gain: 252%

Best Buy (BBY) didn’t stand out to anyone as a company with a bright future at this time last year. The embattled big-box store has its hands full amid e-commerce competition and “showrooming,” and many left it for dead.

That pessimism was clearly overdone, however, as Best Buy has learned how to adapt and survive in this environment.

Although sales have actually declined for six consecutive quarters, Best Buy has managed to stage a pretty substantial turnaround by slashing costs. In fact, BBY stock will close this fiscal year with its first annual profit since 2011, and is forecast to then grow earnings a modest 9% again next year.

But investors shouldn’t confuse efficiency with growth, and if Best Buy was oversold a year ago, it could very well be overbought now. It’s undeniable that part of the pop in share price is thanks to founder Richard Schulze making noise about taking the company private, and a short squeeze that allowed the stock to double in a few months to start the year … but what will lift BBY stock in 2014?


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/5-cinderella-stocks-to-sell/.

©2014 InvestorPlace Media, LLC

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