Up 70% in a year, is it time to cash in some gains on JB Hi-Fi shares?

Should you sell those booming JB Hi-Fi shares today?

| More on:
Woman checking out new laptops.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

JB Hi Fi Ltd (ASX: JBH) shares have delivered stockholders some outsized gains over the past year.

Shares in the S&P/ASX 200 Index (ASX: XJO) electronics retailer are currently sitting at $98.40. That puts them up 69.98% since this time last year, dwarfing the 10.83% gains delivered by the ASX 200 over this same time.

And that's not including the $3.41 a share in fully franked dividends JB Hi-Fi paid out over the year. If we add those back in, then JB Hi-Fi stock is up an accumulated 75.9% over 12 months.

But with those kinds of gains already in the bag, should investors consider taking some profits off the table?

Time to sell those soaring JB Hi-Fi shares?

MPC Markets' Jonathan Tacadena has a very positive view on JB Hi-Fi shares.

But following the stellar run higher for the ASX 200 retail stock, he nonetheless has a sell rating on them (courtesy of The Bull).

"This consumer electronics giant is a top performer," Tacadena said.

He added:

It continues to generate sales growth and, accordingly, investors have reacted positively to the stock. The shares have risen from $57.44 on January 25, 2024, to trade at $98.48 on January 23, 2025.

And that, Tacadena said, may portend the end of the current rally for JB Hi-Fi.

"In our view, the shares are priced to perfection, leaving little or no room for error. The stock is trading at premium valuations compared to its peers," he said.

According to Tacadena:

Any downturn in what is widely considered a subdued economy could negatively impact the shares. Investors may want to consider cashing in some gains.

 Citi says buy

Despite MPC Markets' standpoint on JB Hi-Fi shares, Citi still reckons there is plenty more juice left in the retailer's tank.

Just last week, the broker reaffirmed its buy rating on the stock and upgraded its price target from $85 to $110. The upgrade helped propel JB Hi-Fi shares up by 2.68% on the day.

If JB can achieve Citi's price target, this suggests around 12% upside from current pricing.

What's been happening with the ASX 200 electronics retailer?

The last price-sensitive information to directly impact JB Hi-Fi shares came on 31 October.

That's when the company released its first quarter trading update (Q1 FY 2025) and reported on its annual general meeting (AGM).

Investors reacted positively to the trading update, with JB Hi-Fi achieving growth in both its Australian and New Zealand JB Hi-Fi businesses along with the Good Guys.

Among the highlights, the company reported total sales growth for JB HI-Fi Australia of 4.9%, total sales growth for JB Hi-Fi New Zealand of 19.6%, and total sales growth for The Good Guys of 5.3%

At the company's AGM, CEO Terry Smart noted, "FY 2024 was another strong year with group sales of $9.59 billion, group earnings before interest and taxes (EBIT) of $647.2 million and earnings per share of 401.4 cents."

JB Hi-Fi shares closed up 5.3% on the day.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

A happy young couple celebrate a win by jumping high above their new sofa.
Earnings Results

Nick Scali shares jump 12% on better than expected half year results

How did the furniture retailer perform during the first half? Here's what you need to know.

Read more »

A woman holds a piece of pizza in one hand and has a shocked look on her face.
Consumer Staples & Discretionary Shares

Why are Domino's shares rocketing 22% today?

This pizza chain operator is delivering some good news to shareholders on Friday.

Read more »

Close-up Of Empty Shopping Cart Near Person's Hand Using Calculator Over White Desk
Consumer Staples & Discretionary Shares

Which ASX 200 consumer staples share will pay the best dividend yield in 2025?

Consumer staples companies tend to enjoy reliable revenue streams, even in tough economic conditions.

Read more »

A customer and shopper at the checkout of a supermarket.
Consumer Staples & Discretionary Shares

Buying Woolworths shares? Here's what you need to know about the retailer's latest overhaul

Woolworths announced leadership and organisational overhauls today.

Read more »

A photo of a young couple who are purchasing fruits and vegetables at a market shop.
Consumer Staples & Discretionary Shares

Would Warren Buffett buy Woolworths shares?

Would the supermarket business appeal to the Omaha legend? Here’s my view.

Read more »

A smiling woman walks along the street with shopping bags over her shoulder.
Dividend Investing

Which ASX 200 consumer discretionary share will pay the best dividend yield in 2025?

Experts say interest rate cuts will provide a tailwind for ASX retail shares this year.

Read more »

A woman carries a stack of boxes along a street after a big day of shopping
Share Market News

Here's how the ASX 200 market sectors stacked up last week

Consumer discretionary shares led the ASX 200 market sectors last week with a 4.3% gain.

Read more »

a person in the dark background of a casino gambling room places his hands either side of a large pile of casino chips on a card table.
Consumer Staples & Discretionary Shares

The Star Casino share price just rocketed 13%! Here's why

Star Casino shares are charging higher today. But why?

Read more »