Back to top

Image: Bigstock

Bed Bath & Beyond (BBBY) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Bed Bath & Beyond (BBBY - Free Report) closed at $16.20, marking a -0.61% move from the previous day. This move lagged the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.16%.

Heading into today, shares of the home goods retailer had lost 3.61% over the past month, lagging the Retail-Wholesale sector's gain of 2.62% and the S&P 500's gain of 2.07% in that time.

BBBY will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.08, down 75% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.58 billion, down 6.32% from the year-ago period.

BBBY's full-year Zacks Consensus Estimates are calling for earnings of $1.98 per share and revenue of $11.50 billion. These results would represent year-over-year changes of -3.41% and -4.43%, respectively.

It is also important to note the recent changes to analyst estimates for BBBY. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 9.8% higher within the past month. BBBY is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note BBBY's current valuation metrics, including its Forward P/E ratio of 8.25. This represents a discount compared to its industry's average Forward P/E of 11.34.

We can also see that BBBY currently has a PEG ratio of 8.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.82 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 87, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Bed Bath & Beyond Inc. (BBBY) - free report >>

Published in