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BBY Stock vs. RSH Stock: Is Either Struggling Retailer Worth Your Cash?

Their turnarounds are unlikely, but could possibly pay off

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It’s beginning to look like electronics retailers Best Buy (BBY) and Radio Shack (RSH) are in a race to the bottom. Sure, JCPenney (JCP) and Sears Holding (SHLD) are the poster boys for retail incompetence these days, but BBY and RSHare giving those department stores a run for the money.

fightboxerbattle185 BBY Stock vs. RSH Stock: Is Either Struggling Retailer Worth Your Cash?BBY stock and RSH stock have been bleeding for years, caught between the rock of Amazon (AMZN) and the hard place of Walmart (WMT). Neither retailer can compete with online prices, or always low prices. As such, both BBY and RSH are suffering from the dreaded “showrooming” syndrome. That’s where customers research a purchase in person at a store, only to buy it online at a lower price later.

Really, there’s only reason to care about BBY stock or RSH stock. See, when stocks get clobbered as hard as these guys, there the potential for a huge killing on a rebound — even if it’s incredibly unlikely.

Best Buy stock is a great example of this phenomenon, as shares more than tripled last year after being all but written off in 2012. Radio Shack stock, meanwhile, actually put up some market-beating gains in the aftermath of the last recession. Its turnaround may not be probable, but it is possible.

Let’s take a look at BBY stock and RSH stock to see if either is worth a dime of your portfolio:


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/bby-stock-rsh/.

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