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Shares of Best Buy Co., Inc. (BBY - Analyst Report) surged to attain a new 52-week high of $44.34 on Nov 11, 2013, before closing at $44.33. Shares of this Zacks Rank #1 (Strong Buy) stock have amassed a year-to-date return of roughly 282.5%.

Based on the current price, this online and brick and mortar electronic retailer is 5.5% above the Zacks Consensus average analyst price target of $42.00. The company currently trades at a forward P/E of 18.3x, a 28.2% discount to the industry average of 25.5x.

Best Buy is undergoing a turnaround program including the price match policy, multi-channel strategy, multi-year cost reduction program and closing of some big box stores. Its ‘Revenue Blue’ project is expected to minimize costs. Best Buy, in second-quarter fiscal 2014, successfully slashed expenses by $65 million, thereby bringing the total reduction to $390 million out of $725 million targeted from the North American business.

Management is undertaking a competitive pricing strategy and making investments in areas such as online, mobile, the multi-channel approach, optimum utilization of floor area and refurbishment of its website (bestbuy.com) functionality. The company also initiated the “buy online -- ship from store” endeavor.

Best Buy’s online sales performance remains a positive. Domestic online sales came in at $477 million, while comparable online sales rose 10.5%. We believe that the company is leaving no stone unturned in wooing consumers and growing incremental revenues, as evident from its strategic initiative of forming a partnership with Samsung and opening "Samsung Experience Shops" within its stores.

Moreover, Best Buy entered into a similar agreement with Microsoft Corp. (MSFT - Analyst Report) to roll out “Windows Store” across its 500 outlets in the U.S. with an additional 100 in Canada. This will help the company to add more compelling products to its portfolio, which will consequently enable to compete with players like Wal-Mart Stores Inc. (WMT - Analyst Report) and online retailers like Amazon.com Inc. (AMZN - Analyst Report).

Best Buy also completed the divestiture of its 50% stake in Best Buy Europe to Carphone Warehouse Group, the joint venture partner in the same. The move will enable the company to concentrate more on its U.S. operations and increase its return on capital as well. Hence, the stock looks promising.

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