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Bed Bath & Beyond (BBBY) Soars 17.6%: Is Further Upside Left in the Stock?

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Bed Bath & Beyond (BBBY - Free Report) shares rallied 17.6% in the last trading session to close at $11.75. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.8% gain over the past four weeks.

Bed Bath & Beyond stock, which regained its NYSE listing at the end of August, reflects the new owner’s ongoing efforts to revive and reposition the brand. Recently, the company acquired the Kirkland’s Home trade name and brand assets from The Brand House Collective, Inc. for $10 million. The acquisition supports BBBY’s national store conversion strategy, turning Kirkland’s Home locations into Bed Bath & Beyond stores to expand its footprint and enhance omni-channel growth. The move also extends Kirkland’s Home into the wholesale market, bringing its 60-year legacy in seasonal décor and furnishings to independent retailers nationwide. Management underscored the strong momentum behind conversions and expressed confidence in continued growth under Amy Sullivan’s leadership.

The stock rally also reflects BBBY’s newly announced special dividend in the form of warrants to shareholders of record as of Oct. 2, 2025. Investors will receive one warrant for every ten shares held, with distribution expected on or about Oct. 7, 2025, requiring no action or payment from shareholders. The warrants, to be listed on the NYSE under the ticker BBBYW, will provide holders the flexibility to trade them or exercise at an attractive entry point.

This online discount retailer is expected to post quarterly loss of $0.33 per share in its upcoming report, which represents a year-over-year change of +65.6%. Revenues are expected to be $259.23 million, down 16.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Bed Bath & Beyond, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BBBY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Bed Bath & Beyond belongs to the Zacks Internet - Commerce industry. Another stock from the same industry, CarGurus (CARG - Free Report) , closed the last trading session 1.8% higher at $38.21. Over the past month, CARG has returned 6.1%.

For CarGurus, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.57. This represents a change of +26.7% from what the company reported a year ago. CarGurus currently has a Zacks Rank of #3 (Hold).


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