Shares in JB Hi-Fi Limited (ASX: JBH) have jumped 51c or 2.8% today to be trading at $18.88. Earlier in the session, they soared to a high of $19.07.
Despite today’s gain, it has been a rather disappointing year for shareholders. After the shares skyrocketed nearly 110% (not including dividends) in 2013, they have since retreated more than 12% this calendar year, while the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has edged forward 1%.
However, the stock appears to be gathering some more momentum having jumped more than 7% in the last week. Although the company hasn’t released any specific news that would explain the gain, it could be attributed to reports of rising consumer confidence.
Although confidence still remains far below the levels seen prior to announcements of budget-cuts and tax-hikes, the ANZ-Roy Morgan consumer confidence index showed confidence rose 1% last week. It is expected to rise another 3-5% over the coming months.
Alternatively, the gain could also have come from a lack of news released by the company. Thanks to the horror budget and ‘unseasonably warm weather’, other companies like The Reject Shop Ltd (ASX: TRS) and Pacific Brands Limited (ASX: PBG) have issued profit warnings which sent ripples throughout the retail sector.
Indeed, in these circumstances (as is most often the case), a lack of news is good news!
Is JB Hi-Fi a good buy today?
Unlike plenty of its competitors, JB Hi-Fi has proven to be resilient even through the toughest market conditions. The company has managed to grow its sales annually over the last decade while its underlying profit has only experienced one slight annual setback in 2012.
Offering a trailing 4.1% fully franked dividend yield and with significant growth opportunities thanks to its new Home format stores, JB Hi-Fi could certainly be a good bet for your money.