Best Buy Co., Inc. Puts In A Major Top On Upgrade
Best Buy Co., Inc. (NYSE:BBY) was upgraded today by Oppenheimer today. The firm gave it an outperform rating with a $50 price target. The top is now in the retailer in my opinion. First, who in the world would upgrade a stock that is already up 250% in the last year? Where was the upgrade when it was trading under $12.00 per share? This is just insanity and classic chasing by an analyst who was late to the party. If you look at stocks like Apple Inc, you can clearly see when the upgrades come at epic highs it marks a top in the stock.
Next, the technical chart is not only extremely overbought, but has just filled a major gap. This represents a major level for a pull back that should begin as early as tomorrow.
Best Buy Co. has had a great run. I am not looking to take anything away from it. I am just recognizing that the stock is ready to pull back over the next few months.