Best Buy is one of the biggest gainers in the S&P 500 on easing U.S.-China trade worries

[Photo of shops and restaurants at Tower Shops outdoor mall Davie Florida Best Buy]
felixmizioznikov

Best Buy Co. (NYSE:BBY [https://seekingalpha.com/symbol/BBY]) was the biggest gainer in the consumer sector in Monday morning trading. Shares jumped 6.8% to completely offset the decline on Friday tied to concerns about the U.S.-China trade battle escalating.

Tariffs are especially painful for hurt Best Buy (NYSE:BBY [https://seekingalpha.com/symbol/BBY]) because they can increase costs on imported electronics and appliances, which forces the Minneapolis-based company to either absorb some of the extra expenses or pass them along to consumers through higher prices, potentially cutting into demand. Tariffs have already led Best Buy (BBY [https://seekingalpha.com/symbol/BBY]) to lower its full-year revenue and profit outlook this year.

Ahead of the holiday season, the retailer just capped off its annual "Techtober Sale," which competes with Amazon (AMZN [https://seekingalpha.com/symbol/AMZN]) Prime Day and may have generated additional positive sentiment for the stock anticipating strong sales performance. Analysts have also pointed to Best Buy (BBY [https://seekingalpha.com/symbol/BBY]) as potentially benefiting from the desktop and laptop replacement cycle ramping up.

Shares of Best Buy (BBY [https://seekingalpha.com/symbol/BBY]) are down 12.7% on a year-to-date basis. Both Seeking Alpha analysts and Wall Street analysts have a consensus Buy rating on the retail stock.

MORE ON BEST BUY

* Best Buy: Stabilizing Value, But Risks Remain (Rating Upgrade) [https://seekingalpha.com/article/4826547-best-buy-stabilizing-value-but-risks-remain-upgrade]
* Best Buy: Multiple Drivers To Support Earnings Growth [https://seekingalpha.com/article/4818872-best-buy-multiple-drivers-to-support-earnings-growth]
* Despite The Cautious Guidance, We Upgrade Best Buy To A Buy [https://seekingalpha.com/article/4817886-despite-the-cautious-guidance-we-upgrade-best-buy-to-a-buy]
* Why Microsoft abandoning Windows 10 could be a tailwind for Best Buy [https://seekingalpha.com/news/4502837-why-microsoft-abandoning-windows-10-could-be-a-tailwind-for-best-buy]
* Retail catalyst: Best Buy may have an underappreciated profit machine with its advertising business [https://seekingalpha.com/news/4502562-retail-catalyst-best-buy-may-have-an-underappreciated-profit-machine-with-its-advertising-business]