Is Best Buy Co., Inc. (BBY) A Good Stock To Buy?

Since Best Buy Co., Inc. (NYSE:BBY) has witnessed falling interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of hedgies who sold off their positions entirely by the end of the third quarter. At the top of the heap, Curtis Macnguyen’s Ivory Capital (Investment Mgmt) dropped the largest stake of the “upper crust” of funds followed by Insider Monkey, worth about $59 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also said goodbye to its stock, about $24.2 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 6 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Best Buy Co., Inc. (NYSE:BBY). We will take a look at Agrium Inc. (USA) (NYSE:AGU), Fidelity National Financial Inc (NYSE:FNF), FleetCor Technologies, Inc. (NYSE:FLT), and AMETEK, Inc. (NYSE:AME). This group of stocks’ market caps match BBY’s market cap.

As you can see these stocks had an average of 34 hedge funds with bullish positions and the average amount invested in these stocks was $2.18 billion, versus $700 million in BBY’s case. FleetCor Technologies, Inc. (NYSE:FLT) is the most popular stock in this table. On the other hand AMETEK, Inc. (NYSE:AME) is the least popular one with only 16 bullish hedge fund positions. Best Buy Co., Inc. (NYSE:BBY) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FLT might be a better candidate to consider a long position.