BBY Stock Pops on Sunny Holiday Forecast

Best Buy gave strong guidance for the holiday shopping season

The shares of electronics retailer Best Buy Co Inc (NYSE:BBY) are up 5.9% to trade at $78.59 this morning, after the company posted a same-store sales beat and profit that exceeded expectations for its third quarter. The company also said it anticipated a strong holiday shopping season, predicting a fourth-quarter profit that topped analysts' estimates.

This pop has put the equity at levels not seen since September 2018, with the security earlier tagging a 14-month peak of $78.61. The shares are also bouncing off their 40-day moving average, and now boast a roughly 44% year-to-date gain.

Analysts have remained quiet following this morning's earnings announcement, which could change, considering that 10 brokerages in coverage consider BBY a "hold," compared to only five who say it's a "buy." What's more, the consensus 12-month target price is right in line with current levels.

The options pits are singing a different tune, though. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 2.35 calls have been bought to open for every put during the last 10 weeks. What's more, this ratio sits in the 96th percentile of its annual range, suggesting a bigger-than-usual appetite for bullish bets of late.