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Earnings Watch: 5 Crummy Retail Stocks on Deck

Even beat-and-raise earnings won't change the thesis on these struggling retail stocks, which have more losses to come

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Best Buy (BBY)

Best Buy earnings BBY stockBest Buy (BBY) earnings come Thursday, and investors will be hoping for something to snap BBY stock out of its hangover. After jumping more than 235% in 2013, BBY stock is off 36% so far in 2014.

But like Staples, Best Buy and BBY stock are getting hurt by Amazon — and there’s only so much the specialty electronics retailer can do to fight back.

As we noted last quarter, BBY has an unsustainable model for turning itself around. Cost cuts will only get you so far as long as sales keep falling.

All consumer electronics retailers had a terrible start to the year, in part because of the weather, but the lack of any new must-have gadgets is also to blame. So much for top-line growth.

Best Buy is projected to report earnings of 20 cents a share, down from 32 a year ago. Meanwhile, revenue is expected to fall 2%.

BBY will get high marks for its expense reduction, but that’s about it.

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