Best Buy is the store to beat…
This electronics retailer’s earnings performance is unmatched.
Some companies struggled with the pandemic lockdowns – but others found their business boosted thanks to consumers seeking out new hobbies. From new gaming systems to home renovations, consumers flocked to stores they might have once ignored – looking to cure the boredom the pandemic had brought on.
And Best Buy is one of those lucky names. This company has been capitalizing on shoppers grabbing laptops, home theater systems, kitchen appliances, and other electronics. And the surge in shoppers has officially been taken notice of thanks to its strong earnings report.
Here’s the rundown…
Where’s the money?
The electronics giant recently announced that sales at stores open for at least one year grew 23% during the last three months (ending on October 31) compared with the same stretch the previous year. And this jump in growth delivered an incredible feat: the best quarter Best Buy has seen in 25 years.
Much of Best Buy’s growth came from home delivery and curbside pickup sales. Online sales boomed 174% last quarter and accounted for more than one-third of the company’s sales. And this boom in net sales led to an increase of $11.9 billion last quarter, while its profit grew to $391 million.
And here’s how could profit off this boom in business…
How do I get some?
It’s no surprise to see Best Buy doing so well. You know, I’ve been saying it since the beginning, the only way any retail name would survive this current climate would be to shift focus from brick and mortar to their online presence. And that’s exactly what Best Buy did.
The second the news of shutdowns hit, Best Buy began building out a plan to improve the online shopping experience. From enhancing the curbside pickup service to making the website easier to navigate, the electronics retailer improved their online presence all around – and as you can see, it really paid off in a big way.
On top of this, with people spending less money on vacations and eating out, consumers shifted their spending habits to buying more toys and items that can offer exciting in-home experiences. I see this trend continuing. And that’s why I would advise you to pull Best Buy on any pullback.
In the spotlight: The hot sauce battle…
McCormick just wrapped up a major deal, and it’s adding another big name to its lineup.
McCormick products are somewhat of a legend, and even while you may not realize it, you most likely have a few of their products in your kitchen. From spices to seasonings – McCormick has made quite a name for itself over the last few years. And now, it has officially acquired the famous hot sauce brand Cholula for $800 million.
Over the years, McCormick has built what many call a hot sauce empire. Back in 2017, the company bought industry leader Frank’s RedHot. Frank’s combined with Cholula make up about 20% of hot sauce sales. That puts the company far ahead of the competitors like Tabasco.
And that’s good news seeing that the hot sauce market has been on a steady upward climb over the last few years. U.S. sales of hot sauce grew on average 9.7% every year over the last four years. And the pandemic was actually a booster for the industry as sales surged 24.6% in the previous 12 months.
This was a smart move for McCormick, seeing that Cholula and Frank’s RedHot typically serve different markets and aren’t commonly seen as competitors. And I’m excited to see the growth that comes to McCormick over the next few months. And I’ll be sure to keep you updated.
In Other News…
Recently, the announcements of not one, but two potential vaccines spurred growth and an overall sense of optimism in the market.
But then, a third candidate emerged, suddenly giving traders seeking to play the vaccine race for profits some options to choose from.
When it comes to biotech investments, there’s one man I trust above almost anyone – my colleague Michael Robinson, a 36-year Silicon Valley veteran who makes it his mission to help folks navigate opportunities in the biotech market.
He’s uncovered a way to score big as the vaccine market irons itself out, with a revenue surge of over 58,000% expected in only a year’s time.
Read more about this right here.