Best Buy Beefs Up with Acquisitions

Best Buy (NYSE:BBY) announced today it will buy Carphone Warehouse Group Plc’s (CPW) share of their joint mobile phone endeavor and close stores in the U.K. that were opened just two years ago. Best Buy’s purchase will cost them $1.34 billion, but Chief Executive Officer Brian Dunn is saying the investment will increase earnings long term.

With declining television sales and increased competition, Dunn is turning his focus on the mobile phone market after five straight quarters of decline in stores. Bloomberg quotes Telsey Advisory Group analyst Joe Feldman as saying, “The investment community has wanted to see Best Buy take full control of the U.S. mobile business where there’s still strength at least for the near term. Closing the U.K. stores signals the highly competitive market and the tough economic environment.”

The Carphone Warehouse Group purchase comes amidst other changes at Best Buy. The retailer is in the middle of reorganizing its stores into a model Dunn calls the “connected store,” where electronics will be displayed openly on low tables and employees are trained on showing how the items connect. In a separate deal today, Best Buy (NYSE:BBY) also purchased mindSHIFT Technologies Inc., a provider of information technology services to small and medium sized business, for $167 million.

Here’s how Best Buy and it’s top competitors closed today:

  • Best Buy Co. Inc. (NYSE:BBY): The shares recently traded at $26.46, down $0.85, or 3.11%. Its market capitalization is $9.59 billion. They have traded in a 52-week range of $21.79 to $45.63. Volume today was 6,674,088 shares versus a 3-month average volume of 7,150,730 shares. The company’s trailing P/E is 8.85, while trailing earnings are $2.99 per share. The company pays a dividend of $0.64 per share for a dividend yield of 2.30%. About the company: Best Buy Co., Inc. retails consumer electronics, home office products, entertainment software, appliances and related services through its retail stores, as well as its web site. The Company also retails pre-recorded home entertainment products through retail stores. Get the most recent company news and stock data here >>
  • RadioShack Corp. (NYSE:RSH): The shares recently traded at $13.03, down $0.19, or 1.44%. Its market capitalization is $1.30 billion. They have traded in a 52-week range of $10.68 to $20.81. Volume today was 2,495,481 shares versus a 3-month average volume of 2,967,100 shares. The company’s trailing P/E is 11.79, while trailing earnings are $1.11 per share. The company pays a dividend of $2.00 per share for a dividend yield of 15.10%. About the company: RadioShack Corporation operates a chain of retail consumer electronics goods and services stores located throughout the United States and Mexico, along with wireless phone kiosks in the US, and dealer outlets worldwide. The Company offers consumers wireless phone and other electronic products and services from national brands and exclusive private brands and wireless carriers. Get the most recent company news and stock data here >>
  • hhgregg, Inc. (NYSE:HGG): The shares recently traded at $15.47, up $0.95, or 6.54%. Its market capitalization is $591.59 million. They have traded in a 52-week range of $8.88 to $25.95. Volume today was 1,069,191 shares versus a 3-month average volume of 487,018 shares. The company’s trailing P/E is 13.28, while trailing earnings are $1.17 per share. About the company: hhgregg, Inc. retails video products, brand name appliances, audio products and accessories. Get the most recent company news and stock data here >>
  • Target Corp. (NYSE:TGT): The shares recently traded at $52.83, up $0.66, or 1.27%. Its market capitalization is $35.67 billion. They have traded in a 52-week range of $45.28 to $60.97. Volume today was 3,868,764 shares versus a 3-month average volume of 7,729,420 shares. The company’s trailing P/E is 12.55, while trailing earnings are $4.21 per share. The company pays a dividend of $1.20 per share for a dividend yield of 2.30%. About the company: Target Corporation operates general merchandise discount stores in the United States. The Company’s merchandising operations include general merchandise and food discount stores and a fully integrated online business. Target also offers credit to qualified applicants through its branded proprietary credit cards. Get the most recent company news and stock data here >>
  • Wal-Mart Stores Inc. (NYSE:WMT): The shares recently traded at $57.94, up $0.44, or 0.77%. Its market capitalization is $199.70 billion. They have traded in a 52-week range of $48.31 to $57.96. Volume today was 8,510,090 shares versus a 3-month average volume of 14,562,400 shares. The company’s trailing P/E is 12.33, while trailing earnings are $4.70 per share. The company pays a dividend of $1.46 per share for a dividend yield of 2.60%. About the company: Wal-Mart Stores, Inc. operates discount stores, supercenters, and neighborhood markets. The Company’s discount stores and supercenters offer merchandise such as apparel, housewares, small appliances, electronics, and hardware. Walmart’s markets offer a full-line supermarket and a limited assortment of general merchandise. The Company operates nationally and internationally. Get the most recent company news and stock data here >>