Best Buy Co. Inc (BBY)
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is decreasing.
- The decline rate of the primary trend is 13.45% per annum.
- BBY price at the close of July 25, 2024 was $87.35 and was higher than the top border of the primary price channel by $13.65 (18.51%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 7.53% per annum.
- BBY price at the close of July 25, 2024 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of BBY price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: August 12, 2020
End date: December 13, 2023
a = 4.8081
b = -0.0004
s = 0.1074
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0004) – 1
= -13.45%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1074) – 1
= 53.64%
August 12, 2020 calculations
Top border of price channel:
Exp(Y264)
= Exp(a + b × X264 + 2 × s)
= Exp(a + b × 383 + 2 × s)
= Exp(4.8081 + -0.0004 × 383 + 2 × 0.1074)
= Exp(4.8712)
= $130.48
Bottom border of price channel:
Exp(Y264)
= Exp(a + b × X264 – 2 × s)
= Exp(a + b × 383 – 2 × s)
= Exp(4.8081 + -0.0004 × 383 – 2 × 0.1074)
= Exp(4.4417)
= $84.92
December 13, 2023 calculations
Top border of price channel:
Exp(Y1,104)
= Exp(a + b × X1,104 + 2 × s)
= Exp(a + b × 1,601 + 2 × s)
= Exp(4.8081 + -0.0004 × 1,601 + 2 × 0.1074)
= Exp(4.3891)
= $80.57
Bottom border of price channel:
Exp(Y1,104)
= Exp(a + b × X1,104 – 2 × s)
= Exp(a + b × 1,601 – 2 × s)
= Exp(4.8081 + -0.0004 × 1,601 – 2 × 0.1074)
= Exp(3.9597)
= $52.44
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 13.45% per annum.
- BBY price at the close of July 25, 2024 was $87.35 and was higher than the top border of the primary price channel by $13.65 (18.51%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: May 18, 2022
End date: July 25, 2024
a = 3.9947
b = 0.0002
s = 0.0805
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0002) – 1
= 7.53%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0805) – 1
= 37.97%
May 18, 2022 calculations
Top border of price channel:
Exp(Y709)
= Exp(a + b × X709 + 2 × s)
= Exp(a + b × 1,027 + 2 × s)
= Exp(3.9947 + 0.0002 × 1,027 + 2 × 0.0805)
= Exp(4.3599)
= $78.25
Bottom border of price channel:
Exp(Y709)
= Exp(a + b × X709 – 2 × s)
= Exp(a + b × 1,027 – 2 × s)
= Exp(3.9947 + 0.0002 × 1,027 – 2 × 0.0805)
= Exp(4.0380)
= $56.72
July 25, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(3.9947 + 0.0002 × 1,826 + 2 × 0.0805)
= Exp(4.5189)
= $91.73
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.9947 + 0.0002 × 1,826 – 2 × 0.0805)
= Exp(4.1970)
= $66.49
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 7.53% per annum.
- BBY price at the close of July 25, 2024 was inside the secondary price channel.