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Best Buy Co., Inc. (NYSE:BBY) stock rose about 2% Tuesday after Evercore ISI maintained an In-Line rating and raised its price target from $90 to $95. Buyers appear to be leaning into a risk-on tape and keep pressing a longer-term uptrend that's been in place since the spring.
The company also announced the launch of a new gaming experience for its customers, capturing the fast-growing gaming vertical.
The Nasdaq is down 0.01% while the S&P 500 has gained 0.29%.
The company launched Best Buy Gamers, a new digital platform in beta, partnering with gaming media company IGN, a subsidiary of Ziff Davis, Inc. (NASDAQ:ZD).
The platform will provide gaming members with a more personalized way to explore gaming content, including articles and reviews, the latest technology and gear, special offers, experiences and live Best Buy event updates.
Other features include personalized profile creation and a dedicated in-store gaming experience, starting with a location in Torrance, California, next month.
The free digital experience will be available on BestBuy.com and the Best Buy App starting Oct. 20.
Best Buy highlighted a significant opportunity for the company as millions of gamers shop at the retailer each year, including trying out games in-store and seeking advice from in-store experts.
The launch comes ahead of major video game releases, including Nintendo Co., Ltd's (OTC:NTDOY) The Legend of Zelda: Ocarina of Time on Nov. 5 and Take-Two Interactive Software, Inc.'s (NASDAQ:TTWO) highly anticipated Grand Theft Auto VI on Nov. 19.
Chief Revenue Officer Patrick McGinnis told CNBC the timing of the rollout is "pretty perfect" given the slate of new video games over the next month, though Best Buy has been developing the new platform for over a year.
During the company's recent earnings call in August, incoming CEO Jason Bonfig said that the demand for Grand Theft Auto VI will benefit the gaming category in the fourth quarter.
The company said gaming and computing were among its biggest drivers of growth during its fiscal first-quarter results reported in May.
BBY is holding above every major moving average, trading 4.1% above its 20-day SMA ($89.09), 4.9% above its 50-day SMA ($88.39), and 25.2% above its 200-day SMA ($74.09).
The MACD is above its signal line, while the histogram is positive. Both indicators suggest buying momentum is strengthening.
The bigger-picture backdrop also leans bullish: the 50-day SMA is above the 200-day SMA (a Golden Cross that occurred in July), and price is now pressing toward the upper end of the 52-week range ($96.53).
The stock carries a Hold rating with an average price forecast of $86.53. Recent analyst moves include Evercore ISI maintaining In-Line and raising the price target to $95 on Oct. 20 and DA Davidson downgrading to a Neutral rating and maintaining the target at $95 on Sept. 8.
The MarketDash Edge scorecard for Best Buy highlights its strengths and weaknesses compared to the broader market:
The Verdict: Best Buy's MarketDash Edge signal reveals a momentum-driven setup backed by strong quality, with value reading as reasonable rather than cheap.
Best Buy has a 2.52% weighting in the Invesco High Yield Equity Dividend Achievers ETF (NASDAQ:PEY). It also accounts for 2.08% of the Invesco Bloomberg MVP Multi (NYSE:BMVP) and 3.85% of the Hennessy Sustainable ETF (NASDAQ:STNC).
Because Best Buy carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
BBY Price Action: Best Buy shares were up 2.22% at $93.18 at the time of publication on Tuesday. The stock is approaching its 52-week high of $96.53, according to market data.
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