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Best Buy vs Visa: Which Golden Cross Stock Is the Better Buy Now?

By Trey Thoelcke Published Jul 16, 9:50AM EDT

Quick Read

Both BBY and V flashed golden crosses, but Best Buy already trades above its $79 analyst target while Visa still has room to $401.
Visa's 67% operating margin dwarfs Best Buy's 4%, making Visa the more durable holding despite trading at twice the forward P/E multiple.
Best Buy's November CEO transition and tariff exposure add meaningful risk despite its 4.5% dividend yield and cheap 12x forward earnings multiple.
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Best Buy vs Visa: Which Golden Cross Stock Is the Better Buy Now? — © 24/7 Wall St.

Best Buy (NYSE:BBY | BBY Price Prediction) and Visa (NYSE:V) have both flashed a golden cross this month. That is, their 50-day moving averages have pushed above their 200-day moving averages. Best Buy posted a beat-and-raise quarter for its electronics business, while Visa delivered mid-teens revenue growth from its global payments network. Two different companies, one shared technical signal, and a fair question about which is the better buy now.

How the Quarter Landed for Each Business

Best Buy’s Q1 FY27 showed enterprise comparable sales up 2.0%, with adjusted EPS of $1.28 on revenue of $8.94 billion. Gaming, computing, and mobile phones drove results, with entertainment comps up 38.1% domestically. CEO Corie Barry highlighted “strong performance in our Best Buy Ads and Marketplace initiatives” as evidence the retailer is building profit streams beyond the box. Jason Bonfig takes over on November 1, 2026.

Visa’s Q1 FY26 results looked cleaner. Net revenue climbed 14.6% to $10.90 billion, processed transactions hit 69.4 billion, and cross-border volume rose 12% on a constant-dollar basis. CEO Ryan McInerney credited “resilient consumer spending and a strong holiday season.” A $708 million interchange litigation provision continues to hit GAAP results, a recurring pattern that investors have learned to weather.

Premium Toll Road Meets Discount Big Box

The businesses differ fundamentally. Visa runs a payments network with a trailing operating margin of 67.3% and profit margins above 51%. Best Buy operates big-box stores, with an operating margin around 4% and net margins under 3%. That gap explains why one trades like a compounder and the other like a cyclical.

Lens	Best Buy	Visa
Forward P/E	12x	24x
Dividend Yield	4.5%	0.8%
Analyst Target	$79.15	$401.47
Key Risk	Tariffs, appliances	Interchange litigation

Remember that the golden cross is a lagging signal. Best Buy stock has risen 27.6% year to date to $85.37, already trading above the average analyst price target. Visa trades at $355.14, up 1.3% year to date, with room to run to the consensus price target.

The Next Test Is Durability

For Best Buy, watch whether Marketplace and Best Buy Ads can scale enough to offset softness in appliances and the 1.8% decline in domestic consumer electronics comparable sales. FY27 guidance calls for comps between −1.0% and +1.0%, with the CEO transition as a real variable.

For Visa, monitor data processing revenue, which rose 17% last quarter, plus stablecoin and tokenization initiatives that McInerney continues to highlight.

The Verdict

Best Buy offers a 4.5% dividend and a cheap multiple, but it just ran past its mean analyst target and faces a CEO change and tariff exposure. Visa looks like the more durable holding. Investors pay a premium but receive 67% operating margins, a durable network moat, and consistent buybacks against a $21.1 billion authorization. Best Buy may become more attractive to revisit on a pullback closer to its 200-day moving average.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.