Forget Foot Locker: Best Buy Is the Better Retail Stock

Even in quarantine and in a recession, there are a few things that many of us need to buy. That definitely includes electronic devices, which are necessary for working, learning, and socializing from home. However, many people will also be doing home workouts, running outside, or wearing casual shoes around the house, which should also make this period viable for sneaker sales as well.

Yet between sneaker slinger Foot Locker (NYSE: FL) and electronics specialist Best Buy (NYSE: BBY), investors should definitely gravitate toward the latter. Not only was Best Buy a stronger company heading into the crisis, but its relative strength over Foot Locker is also only likely to accelerate in the months and years ahead.

Both companies reported their first-quarter results last week, illustrating the key differences in their business models, sensitivity to stay-at-home orders, and giving a sneak peak into why Best Buy is the more solid pick of the two.

Source Fool.com