Three Stocks in the Spotlight: Best Buy, GameStop, and Micron Technology
As the new trading week begins, Best Buy, GameStop, and Micron Technology are catching Wall Street's eye. Let's dive into why these three stocks are generating so much buzz today.
Best Buy Gets a Boost from UBS Analysts, New Price Target
Best Buy (NYSE: BBY) saw its shares increase by 3.5%, reaching $90.28, after analysts at UBS upgraded the stock from Neutral to Buy. UBS also raised its price target to $106 from $85. This positive outlook is due to several potential growth drivers over the next 18 months, including:
- An improving housing market
- A pending replacement cycle for electronics
- Growing adoption of AI-powered devices
- Expansion into new product categories
UBS expects a "nice recovery" for Best Buy's sales in late 2024 and 2025. The company's successful restructuring efforts, which have boosted its earnings potential, and its attractive valuation were also highlighted. Currently, Best Buy offers a 4.3% dividend yield and trades at a 30% discount compared to the S&P 500.
GameStop Shareholder Meeting in the Spotlight
GameStop (NYSE: GME) is holding its annual shareholder meeting today at 12:30pm ET. This event has generated significant excitement among the company's loyal base of retail investors on social media.
GameStop's stock has gained 67% since influential investor Keith "Roaring Kitty" Gill resurfaced in May after a three-year break. Gill revealed a sizable 9 million share stake in the video game retailer. However, the specifics of the meeting's agenda remain unclear, and it's not certain if Gill will attend.
As of 12:02pm ET, GameStop shares were trading 3.6% lower at $27.67.
Micron Technology Attracts Upgrade
In the technology sector, Micron Technology (NASDAQ: MU) saw its shares rise in pre-market trading after receiving an upgrade from Cantor Fitzgerald. The firm increased its price target for Micron to $180 from $150 and reiterated its Overweight rating on the stock.
Other analysts have also issued bullish calls and raised their price targets for Micron in recent months. However, the company has seen substantial insider selling, with its CEO and SVP selling shares worth over $2.6 million between April and June. Despite this, institutions remain confident in Micron's prospects, as over 80% of its shares are held by institutional investors.
Micron posted strong fiscal Q2 results in March, beating consensus estimates with revenue of $5.82 billion.
This article outlines why Best Buy, GameStop, and Micron Technology are the stocks to watch this week. Each has unique developments making them catch the eyes of investors and analysts alike.
