Best Buy Has the Best Geeks

Best Buy's stock took an initial and widely-reported hit roughly one month ago on news that big, bad, Amazon would be launching its own Geek Squad competitor.

At the time, we noted that BBY had enjoyed an under-the-radar bull run for quite some time and, in effect, the AMZN news was likely more of an excuse than a catalyst for some near-term profit-taking and an overall reset of the chart. 

Fast-foward to early-August, and BBY is right back at fresh highs, seen on the monthly chart, below. 

Clearly, Jeff Bezos is a powerful man and his rise to prominence has negatively impacted many retail stocks in recent years, especially those with the brick-and-mortar bent. But to reiterate our working thesis on that issue--AMZN eating the retail world is true on some level, though clearly not true on every level.

In fact, the Amazon growth story and dominance functions as an efficient form of capitalism to speed up the creative destruction process, as the weak will perish and the strong not only survive, but thrive. 

And this is all-the-more important to note as the retail sector has been quietly coming back in front of KORS and W earnings tomorrow. Recall that plenty of retail names report earnings later in earnings season, meaning the rest of this month ought to be dominated by retail reports (BBY reports on August 29th).

Simply put, the reaction when the dust settled by BBY is promising for retail bulls, provided that they are in the right names. Inside Market Chess Subscription Services, our goal is to consistently update a running list of emerging retail leaders from the ashes.