The past two months have seen tremendous fluctuations in the stock market, making the word "volatile" feel like an understatement. As investors navigate these uncertain waters, periods of volatility can sometimes present unique buying opportunities. One stock that has caught the eye of many investors is Best Buy Co., Inc. (BBY). Over the past six months, Best Buy's stock has plummeted by approximately 37%, with the majority of that decline occurring within just the last six weeks.

As the market remains unpredictable, the question on many investors' minds is whether now is the right time to buy Best Buy stock. Experts in the field have weighed in, particularly in light of the ongoing tariff discussions that could significantly impact retail businesses.

Pro: Potential Upside in Pricing

At its current price of $61.23 (as of April 17), Best Buy may be trading below its intrinsic market value. John Murillo, the chief dealing officer at B2BROKER, suggests that there is room for improvement. "The stock is currently trading below its fair value," he noted. "While there is potential for a rebound in value, particularly if sentiment toward the tariff discussions improves, such a turnaround is not guaranteed and may not happen immediately." This sentiment is echoed in the analysis from Zacks, which gives Best Buy an average brokerage recommendation of 2.17 on a scale of five, where five indicates a strong sell. Furthermore, Best Buy's price-to-earnings ratio stands at a notably low 9.35, according to data from Morningstar.

Con: Exposure to Tariff Implications

Despite the potential upside, experts caution that Best Buy's vulnerability to tariffs on imports from China could significantly hinder its recovery. Murillo emphasized this risk, stating, "Lets not forget that the biggest U.S. electronics and home appliances retailer has been impacted by tariffs for a reason. Best Buy faces considerable headwinds, as most of its retail products are sourced from China." The ongoing uncertainty surrounding tariffs means that predicting the ultimate impact on retail prices and stock performance is fraught with speculation.

Javier Palomarez, CEO of the U.S. Hispanic Business Council, also highlighted the rapidly evolving nature of tariff regulations. He noted that while Best Buy initially suffered under strict tariff rules, certain exemptions have been granted for products like smartphones and other electronics, adding another layer of complexity to the situation.

Con: Increasing Recession Concerns

Another factor weighing heavily on Best Buy's stock performance is the heightened risk of a recession. Electronics retailers are particularly susceptible during economic downturns, and recent predictions from J.P. Morgan suggest there is a significant 60% chance of a recession occurring soon, as reported by Reuters. Palomarez pointed out that the stock's decline, initially driven by speculation, could be exacerbated by developments related to a potential recession.

Con: Long-Term Performance Woes

Even prior to the latest concerns surrounding tariffs and recession, Best Buy had struggled to meet investor expectations. Murillo observed, "Best Buy has consistently lagged behind what investors had hoped for over multiple quarters." The company reported fiscal year 2024 sales of $13.9 billion, which reflects a notable drop of 5%. This lackluster performance raises questions about the company's ability to bounce back in the current economic climate.