Market Defense Strategy: Focus on Companies with Stock Buybacks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 59 minutes ago
0mins
Source: CNBC
- Buyback Strategy: Wolfe Research highlights that focusing on companies with at least 10 consecutive years of stock buybacks can provide defensive investment during market volatility, particularly excelling during economic downturns.
- Best Buy Performance: Best Buy, with a 5% dividend yield, made the list by returning $1.1 billion to shareholders through buybacks and dividends in fiscal 2026, and despite facing a sales slump, it reported a first-quarter earnings and revenue beat.
- Colgate-Palmolive Growth: Colgate-Palmolive's stock rose 13% in 2026, and it announced a $5 billion share repurchase program in March 2025, increasing its dividend to 53 cents per share, showcasing its strength as a Dividend Aristocrat.
- Honeywell Business Restructuring: Honeywell plans to spin off its aerospace business on June 29, focusing on automation, which is expected to enhance its market competitiveness, with shares up about 17% year to date.
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Analyst Views on BBY
Wall Street analysts forecast BBY stock price to rise
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 74.730
Low
60.00
Averages
79.75
High
96.00
Current: 74.730
Low
60.00
Averages
79.75
High
96.00
About BBY
Best Buy Co., Inc. is a specialty consumer electronics retailer. The Company's segments include Domestic and International. The Domestic segment comprises operations in all states, districts and territories of the United States and Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, Best Buy Marketplace, Geek Squad, Imagine That, Insignia, Lively, Jitterbug, My Best Buy, My Best Buy Memberships, Pacific Kitchen and Home, TechLiquidators and Yardbird; and the domain names bestbuy.com, lively.com and others. The International segment comprises operations in Canada under the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Express, Best Buy Marketplace, Best Buy Mobile, Geek Squad, Insignia and TechLiquidators and the domain names bestbuy.ca and techliquidators.ca. The Company offers computing and mobile phones, consumer electronics, appliances, entertainment, services and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Best Buy CFO Resigns, New CEO Appointed
- Executive Transition: Best Buy announced that CFO Matt Bilunas will resign on July 31 after a 20-year tenure, indicating potential challenges in financial management during this transitional period.
- CEO Appointment: The company has appointed 27-year veteran Jason Bonfig as its new CEO, succeeding Corie Barry, with the transition set for October 31, aimed at addressing sluggish sales and declining demand for consumer electronics.
- Financial Oversight: Until the new CFO is appointed, current CEO Corie Barry will oversee financial operations, a move that may impact financial decision-making and strategic direction amid weak sales growth.
- Market Reaction: Best Buy's stock fell approximately 2.54% in after-hours trading to $74.08, reflecting investor concerns regarding the leadership changes and the challenging market environment.
See More
Market Defense Strategy: Focus on Companies with Stock Buybacks
- Buyback Strategy: Wolfe Research highlights that focusing on companies with at least 10 consecutive years of stock buybacks can provide defensive investment during market volatility, particularly excelling during economic downturns.
- Best Buy Performance: Best Buy, with a 5% dividend yield, made the list by returning $1.1 billion to shareholders through buybacks and dividends in fiscal 2026, and despite facing a sales slump, it reported a first-quarter earnings and revenue beat.
- Colgate-Palmolive Growth: Colgate-Palmolive's stock rose 13% in 2026, and it announced a $5 billion share repurchase program in March 2025, increasing its dividend to 53 cents per share, showcasing its strength as a Dividend Aristocrat.
- Honeywell Business Restructuring: Honeywell plans to spin off its aerospace business on June 29, focusing on automation, which is expected to enhance its market competitiveness, with shares up about 17% year to date.
See More
Amazon's Prime Day Holds Strategic Significance Amid Inflation
- Sales Growth Expectations: Emarketer estimates that Amazon's U.S. Prime Day sales will rise 7.1% year-over-year to $15.6 billion, accounting for over 60% of all retail sales in the U.S. during this period, highlighting strong consumer demand for discounts.
- Promotional Strategy Shift: Amazon is offering an additional 10% discount on grocery items during the event, aiming to attract budget-conscious shoppers, which reflects a strategic pivot towards everyday essentials in response to inflationary pressures.
- Increased Consumer Participation: Surveys indicate that 55% of U.S. consumers plan to participate in this year's Prime Day, up from 45% last year, suggesting a heightened consumer focus on discounts and a trend towards stocking up on essentials.
- Promotion of Alexa Shopping Assistant: Amazon will leverage its Alexa shopping assistant to enhance user experience, with analysts believing this tool will drive conversion rates and incremental spending on the platform, potentially generating over $200 billion in revenue by 2035.
See More
Best Buy CFO Matt Bilunas Resigns Effective July 31
- Executive Change: Best Buy announced that CFO Matt Bilunas will resign effective July 31, a move that could negatively impact the company's financial strategy and investor confidence in the short term.
- Financial Management Challenges: Bilunas's departure may create uncertainty in financial management and budgeting, particularly in the context of a highly competitive retail environment.
- Market Reaction Anticipation: Investors may express concerns over this executive change, potentially leading to short-term volatility in Best Buy's stock price and affecting market expectations for its future performance.
- Successor Selection: The company needs to quickly identify a successor to ensure stability and continuity in the finance department, thereby maintaining investor confidence and supporting the company's long-term strategic goals.
See More
Best Buy Set to Welcome New CEO Soon
- New CEO Appointment: Best Buy (BBY) is set to welcome Jason Bonfig as its new CEO on October 31, succeeding Corie Barry after her seven-plus years in leadership, aiming for a smooth transition period to maintain operational stability.
- Sales Challenge Outlook: Analyst Greg Melich highlighted that Best Buy faces tougher sales comparisons in June and July, anticipating a deceleration in sales growth due to last year's Switch 2 launch and a strong back-to-school season.
- Maintaining Competitive Edge: Despite sales challenges, Best Buy is expected to remain competitive through decisive appliance initiatives and the exclusive launch of RGB TVs, with a favorable inventory cost position ahead of memory-driven price increases.
- Stock Price Surge: Best Buy's shares rose 3.2% in recent trading, indicating a positive market reaction to the new CEO appointment and future strategies, reflecting investor confidence in the company's outlook.
See More
Best Buy Partners with Meta for AI Glasses Experience
- Partnership Background: Best Buy and Meta Platforms have partnered to launch Meta Labs in 50 Best Buy locations, addressing the 50% of customers who wish to try Meta's AI glasses and VR headsets in person, thereby enhancing consumer confidence in their purchasing decisions.
- Initial Launch Plan: Meta Labs will debut in 5 Best Buy stores in June, with further expansions planned throughout the summer and holiday season, aiming to attract more consumers by enhancing the customer experience.
- Competitive Impact Analysis: Analysts from Goldman Sachs noted that while National Vision, Warby Parker, and EssilorLuxottica also sell AI glasses, the differentiated services offered mean that Best Buy's partnership will not pose a significant threat to these competitors, potentially aiding their market education and consumer adoption efforts.
- Market Outlook: Warby Parker anticipates that this collaboration will enhance its ability to capture traffic ahead of its upcoming AI glasses launch (including Google and Samsung products), while EssilorLuxottica will leverage this opportunity to expand distribution channels and improve consumer awareness of smart glasses.
See More
Best Buy CFO Resigns, New CEO Appointed
- Executive Transition: Best Buy announced that CFO Matt Bilunas will resign on July 31 after a 20-year tenure, indicating potential challenges in financial management during this transitional period.
- CEO Appointment: The company has appointed 27-year veteran Jason Bonfig as its new CEO, succeeding Corie Barry, with the transition set for October 31, aimed at addressing sluggish sales and declining demand for consumer electronics.
- Financial Oversight: Until the new CFO is appointed, current CEO Corie Barry will oversee financial operations, a move that may impact financial decision-making and strategic direction amid weak sales growth.
- Market Reaction: Best Buy's stock fell approximately 2.54% in after-hours trading to $74.08, reflecting investor concerns regarding the leadership changes and the challenging market environment.
See More
Market Defense Strategy: Focus on Companies with Stock Buybacks
- Buyback Strategy: Wolfe Research highlights that focusing on companies with at least 10 consecutive years of stock buybacks can provide defensive investment during market volatility, particularly excelling during economic downturns.
- Best Buy Performance: Best Buy, with a 5% dividend yield, made the list by returning $1.1 billion to shareholders through buybacks and dividends in fiscal 2026, and despite facing a sales slump, it reported a first-quarter earnings and revenue beat.
- Colgate-Palmolive Growth: Colgate-Palmolive's stock rose 13% in 2026, and it announced a $5 billion share repurchase program in March 2025, increasing its dividend to 53 cents per share, showcasing its strength as a Dividend Aristocrat.
- Honeywell Business Restructuring: Honeywell plans to spin off its aerospace business on June 29, focusing on automation, which is expected to enhance its market competitiveness, with shares up about 17% year to date.
See More
Amazon's Prime Day Holds Strategic Significance Amid Inflation
- Sales Growth Expectations: Emarketer estimates that Amazon's U.S. Prime Day sales will rise 7.1% year-over-year to $15.6 billion, accounting for over 60% of all retail sales in the U.S. during this period, highlighting strong consumer demand for discounts.
- Promotional Strategy Shift: Amazon is offering an additional 10% discount on grocery items during the event, aiming to attract budget-conscious shoppers, which reflects a strategic pivot towards everyday essentials in response to inflationary pressures.
- Increased Consumer Participation: Surveys indicate that 55% of U.S. consumers plan to participate in this year's Prime Day, up from 45% last year, suggesting a heightened consumer focus on discounts and a trend towards stocking up on essentials.
- Promotion of Alexa Shopping Assistant: Amazon will leverage its Alexa shopping assistant to enhance user experience, with analysts believing this tool will drive conversion rates and incremental spending on the platform, potentially generating over $200 billion in revenue by 2035.
See More
Best Buy CFO Matt Bilunas Resigns Effective July 31
- Executive Change: Best Buy announced that CFO Matt Bilunas will resign effective July 31, a move that could negatively impact the company's financial strategy and investor confidence in the short term.
- Financial Management Challenges: Bilunas's departure may create uncertainty in financial management and budgeting, particularly in the context of a highly competitive retail environment.
- Market Reaction Anticipation: Investors may express concerns over this executive change, potentially leading to short-term volatility in Best Buy's stock price and affecting market expectations for its future performance.
- Successor Selection: The company needs to quickly identify a successor to ensure stability and continuity in the finance department, thereby maintaining investor confidence and supporting the company's long-term strategic goals.
See More
Best Buy Set to Welcome New CEO Soon
- New CEO Appointment: Best Buy (BBY) is set to welcome Jason Bonfig as its new CEO on October 31, succeeding Corie Barry after her seven-plus years in leadership, aiming for a smooth transition period to maintain operational stability.
- Sales Challenge Outlook: Analyst Greg Melich highlighted that Best Buy faces tougher sales comparisons in June and July, anticipating a deceleration in sales growth due to last year's Switch 2 launch and a strong back-to-school season.
- Maintaining Competitive Edge: Despite sales challenges, Best Buy is expected to remain competitive through decisive appliance initiatives and the exclusive launch of RGB TVs, with a favorable inventory cost position ahead of memory-driven price increases.
- Stock Price Surge: Best Buy's shares rose 3.2% in recent trading, indicating a positive market reaction to the new CEO appointment and future strategies, reflecting investor confidence in the company's outlook.
See More
Best Buy Partners with Meta for AI Glasses Experience
- Partnership Background: Best Buy and Meta Platforms have partnered to launch Meta Labs in 50 Best Buy locations, addressing the 50% of customers who wish to try Meta's AI glasses and VR headsets in person, thereby enhancing consumer confidence in their purchasing decisions.
- Initial Launch Plan: Meta Labs will debut in 5 Best Buy stores in June, with further expansions planned throughout the summer and holiday season, aiming to attract more consumers by enhancing the customer experience.
- Competitive Impact Analysis: Analysts from Goldman Sachs noted that while National Vision, Warby Parker, and EssilorLuxottica also sell AI glasses, the differentiated services offered mean that Best Buy's partnership will not pose a significant threat to these competitors, potentially aiding their market education and consumer adoption efforts.
- Market Outlook: Warby Parker anticipates that this collaboration will enhance its ability to capture traffic ahead of its upcoming AI glasses launch (including Google and Samsung products), while EssilorLuxottica will leverage this opportunity to expand distribution channels and improve consumer awareness of smart glasses.
See More
