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Bed Bath & Beyond (BBBY) Stock Sinks As Market Gains: What You Should Know

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Bed Bath & Beyond (BBBY - Free Report) closed at $16.30 in the latest trading session, marking a -0.61% move from the prior day. This move lagged the S&P 500's daily gain of 1.64%. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.45%.

Heading into today, shares of the home goods retailer had lost 27.31% over the past month, lagging the Retail-Wholesale sector's loss of 5.31% and the S&P 500's loss of 0.83% in that time.

Investors will be hoping for strength from Bed Bath & Beyond as it approaches its next earnings release. The company is expected to report EPS of $0.02, down 75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.97 billion, down 24.76% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.83 per share and revenue of $8.19 billion. These totals would mark changes of +182.18% and -11.3%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Bed Bath & Beyond. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.32% lower within the past month. Bed Bath & Beyond is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Bed Bath & Beyond is holding a Forward P/E ratio of 19.79. This valuation marks a premium compared to its industry's average Forward P/E of 16.56.

Investors should also note that BBBY has a PEG ratio of 0.37 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 0.67 based on yesterday's closing prices.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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