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Gathering momentum from the better-than-expected first-quarter fiscal 2014 bottom-line results, shares of Best Buy Company, Inc. (BBY - Analyst Report) surged to attain a new 52-week high of $28.26 on May 31, 2013, before closing at $27.55. This Zacks Rank #3 (Hold) stock has generated a year-to-date return of approximately 135%.

Based on the current price, this online and brick and mortar electronic retailer is 6.9% above the Zacks Consensus average analyst price target of $25.77. The company currently trades at a forward P/E of 12.05x, a 5.6% discount to the peer group average of 12.76x.

Best Buy came out with the results for the recently concluded quarter on May 21, wherein quarterly earnings of 32 cents a share surpassed the Zacks Consensus Estimate of 25 cents.

The company is undergoing a turnaround program including a price match policy, multi-channel strategy, multi-year cost reduction program and closure of some big box stores. In the quarter, Best Buy has successfully lowered its cost by $175 million, in addition to $150 million reduced in the fourth quarter of fiscal 2013. Moreover, the company is leaving no stone unturned in wooing consumers and capturing incremental revenue, as evident from its strategic initiative of opening "Samsung Experience Shops" within its stores.

Best Buy had also entered into a contract to divest its 50% stake in Best Buy Europe to Carphone Warehouse Group, the joint venture partner in the same. The move would help the company to concentrate more on its U.S. operations, which has been facing stiff competition from industry bellwethers such as Wal-Mart Stores Inc. (WMT - Analyst Report) and Amazon.com Inc. (AMZN - Analyst Report). We believe that the step to offload its stake in Best Buy Europe would augment its return on capital employed.

Alongside, American Express Company (AXP - Analyst Report) achieved a new 52-week high of $77.39 on May 31, 2013.

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