5 Stocks You Can Trust… And 20 You Can’t

Stock #2: Best Buy (BBY)

Best Buy (BBY) isn’t just profiting off of Circuit City’s demise. The company
operates about 1,300 stores in the U.S., Canada and China with an economy of scale that allows it to operate efficiently and very
profitably. This strategy has paid off handsomely in the last year despite the market turmoil.

I know some of you may be wary of retail stocks right
now, so let’s put this company to the test and look at the numbers: During the past four quarters, the company’s sales increased
9.7% to $14.72 billion. The analyst community was expecting operating earnings of $1.40 per share for the latest quarter, so Best
Buy’s earnings of $1.61 per share totaled a 15% earnings surprise.

Looking forward, the company is forecasting earnings for its current fiscal year to total $2.50 to $2.90 per share — considerably
above the consensus estimate of $2.47 per share. BBY is scheduled to release its next round of earnings soon, and in the past
three months, the analyst community has revised their consensus earnings estimate 22% higher!

I rate BBY a B or Buy.

NEXT: Stock #3: McDonald’s (MCD)