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

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In the latest trading session, Bed Bath & Beyond (BBBY - Free Report) closed at $15.88, marking a +0.83% move from the previous day. This move outpaced the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 0.26%.

Prior to today's trading, shares of the home goods retailer had lost 14.73% over the past month. This has lagged the Retail-Wholesale sector's gain of 0.34% and the S&P 500's loss of 0.19% in that time.

BBBY will be looking to display strength as it nears its next earnings release. In that report, analysts expect BBBY to post earnings of $0.08 per share. This would mark a year-over-year decline of 75%. Our most recent consensus estimate is calling for quarterly revenue 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.

Investors might also notice recent changes to analyst estimates for BBBY. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 currently has a Zacks Rank of #2 (Buy).

Digging into valuation, BBBY currently has a Forward P/E ratio of 7.97. Its industry sports an average Forward P/E of 10.98, so we one might conclude that BBBY is trading at a discount comparatively.

Meanwhile, BBBY's PEG ratio is currently 7.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BBBY's industry had an average PEG ratio of 1.85 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.

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