Zillow Inc (Z), SolarCity Corp (SCTY), Best Buy Co., Inc. (BBY): Are These High Flyers Heading up or Primed to Crash?

Turn around, or run away?

Count me among those who, just a year ago, thought Best Buy Co., Inc. (NYSE:BBY) might go the way of Circuit City. CEO Hubert Joly has done a nice job in turning the company around through cost cuts and store closings. However, there’s plenty of reason to doubt that the run-up in the share price over the past year is a sign of things to come. Face it: Best Buy isn’t growing. Revenue is down 15% from the all-time high a couple of years ago, and 10% over the past 12 months, while net income is down 71%.

While Best Buy Co., Inc. (NYSE:BBY)’s “store within a store” concepts with Apple and Samsung and its focus on smartphones are nice, they ignore the major challenge that Amazon and other web retailers bring. While Best Buy could continue to evolve its business (including growth in web sales), this isn’t a strong foundation for an investment thesis.

Final thoughts

All three of these companies have been great investments so far this year. However, Zillow Inc (NASDAQ:Z) and SolarCity Corp (NASDAQ:SCTY) are the only two that really deserve long-term consideration. Best Buy Co., Inc. (NYSE:BBY) is still reestablishing relevance with consumers despite the market’s pricing it like a recovery is a sure thing. It’s probably time to move on.

The article Are These High Flyers Heading up or Primed to Crash? originally appeared on Fool.com and is written by Jason Hall.

Jason Hall owns shares of Zillow and SolarCity. The Motley Fool recommends Zillow. The Motley Fool owns shares of SolarCity and Zillow. 

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