Best Buy (BBY) Peers Rise as Glimmer of Hope Shines Through (RSH) (HGG)

January 11, 2013 4:00 PM EST
Shares of Best Buy (NYSE: BBY) swung higher on Friday after the company reported better-than-anticipated holiday sales. Far from being a panacea, results shows flat sales and negative comps, but considering low expectations, investors found reason to cheer.

Best Buy wasn’t the only big-box retailer entering the holiday season on its back foot. Investors in beleaguered RadioShack Corp. (NYSE: RSH) and hhgregg (NYSE: HGG) are just as eager to get good news. Both have been hammered over the last year to 18 months as the move to e-commerce has broadened.

Investors keyed in on a line Best Buy's report that cited positive comparable store sales growth in mobile phones, tablets/eReaders and appliances. Phones are a key area in RadioShack’s planned recovery and investors are obviously hopeful the result will translate. They may be overlooking the fact that RadioShack and Best Buy have very different models.

After all, being beaten up retails stock is not exactly an asset class and results may not translate.

RadioShack stock swung higher by 5 percent on Friday, while hhgregg ended just about 2 percent better.

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