How Best Buy Co., Inc. (BBY) Got its Mojo Back, and Why There is More Upside: Wal-Mart Stores, Inc. (WMT), Amazon.com, Inc. (AMZN)

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Much of the gains made in Best Buy has already been made, but Best Buy’s business has stabilized. The market will continue to reward shares with a higher multiple as talks of privatization continue throughout 2013. The electronics retailer is more attractive than Amazon.com, Inc. (NASDAQ:AMZN), due to excessive valuation of the latter. Wal-Mart is another investment option for investors who want exposure to retailing.

Wal-Mart Stores, Inc. (NYSE:WMT) increased its dividend to $1.88, up from $1.59 per share. This gives investors a yield of around 2.6%. Best Buy also pays a dividend that yields 4.1%. A combination of a likely turnaround and a higher dividend makes Best Buy a more attractive investment than Wal-Mart.

The article How This Retailer Got its Mojo Back, and Why There is More Upside originally appeared on Fool.com and is written by Chris Lau.

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