Is Bed Bath and Beyond (BBBY) stock cheap at this point?

12:36 pm ET, 25 Sep 2018

Bed Bath & Beyond Inc. (BBBY) shares are trading at $18.84.  The company is announcing its quarterly earnings results on Wednesday after the market close.  What's driving BBBY stock price? What's BBBY stock price forecast?

Bed Bath and Beyond stock has produced a negative return of 13% for 2018. The stock has got a positive rating recently from a Raymond James analyst who believes that Bed Bath and Beyond will be able to post better same-store figures for the next quarter results.

The stock is getting some interest from investors as its valuation is low and also general consumer confidence is improving. On the other hand, certain investors feel that the net profit of the company will decline as the competition from online retailers increases. Revenue rose 0.4% to $2.75 billion in the last quarter results with earnings per share of $0.32.  Same-store sales fell 0.6%.

The second-quarter results will be released after market close on September 26, 2018. For the upcoming report, analysts expect the company to earn $0.50 per share on revenue of $2.96 billion. The company beat analyst estimates in the previous three quarters.

What is the sentiment towards the BBBY stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending negative. 

Over the last month, Bed Bath & Beyond Inc. (BBBY) returned +4.13%.

Bed Bath & Beyond Inc. (BBBY) forward P/E ratio is 9.13, and it's low compared to its industry peers' P/E ratios.

Bed Bath & Beyond Inc. (BBBY) short share of float is 26.01%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Bed Bath & Beyond Inc. (BBBY) average analyst price target ($17.87) is -6.68% below its current price ($19.15).

For the latest price and information on Bed Bath & Beyond Inc., please visit Finstead and search for "BBBY price" or "BBBY news".

Bed Bath & Beyond Earnings Beat: Why Investors Are Optimistic

4:58 pm ET, 20 Dec 2017

Bed Bath and Beyond

Today Bed Bath & Beyond (NASDAQ: BBBY) released earnings results, and it went well.  The Earnings Per Share (EPS) are at $0.44, $0.07 above market expectations.

At $2.96B, revenue was flat year over year and $60M above analyst expectations.

After hour shares are up +7%.

Now, here are the things you should know about BBBY to put the earnings in perspective

  • Bed Bath & Beyond is currently rated as having Conservative Accounting & Governance Risk (AGR) by MSCI, receiving an AGR score that places them in the 90th percentile among all companies in North America.  In other words,  the Company has a really low accounting and governance risk--believe the numbers you see.
  • Driven by horrible first-half results, impacts from Hurricane Harvey, and higher transformation costs, management trimmed forecasts for fiscal 2017.  But the now the Company is overdelivering.  
  • The shift to online retail will be prominent over the next few quarters.  Analysts are saying that with the acquisition of One Kings Lane, an online home furnishings retailer, BBBY is likely to become a one-stop shop for home goods in the online world as well.

Over the last year, BBBY returned -47.60%. This return is lower than Services sector (11.12%), Home Furnishing Stores industry (30.41%), and S&P 500 (17.99%) returns.

Bed Bath & Beyond Inc. (BBBY) Stock Guide

Updated at: 12:02 pm ET, 17 Sep 2020

Before we start: if you're looking for BBBY stock price, you can quickly find it out by visiting Finny and typing "BBBY quote". If you're looking for a quick scoop on BBBY stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "BBBY". You'll get all this info in one place. Or you can just type "BBBY news" to get the latest stock news.

Looking to buy or sell Bed Bath & Beyond Inc. (BBBY)? Interested in getting the full scoop on BBBY, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this BBBY stock guide, we'll address key questions about BBBY, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are BBBY earnings?
2. What is BBBY dividend?
3. What is BBBY dividend yield?
4. What is BBBY stock forecast (i.e., prediction)?
5. BBBY buy or sell? What is BBBY Finny Score?
6. What are the reasons to buy BBBY? Why should I buy BBBY stock?
7. What are the reasons to sell BBBY? Why should I sell BBBY stock?
8. What are BBBY key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are BBBY earnings?

BBBY trailing 12-month earnings per share (EPS) is -$4.42.

2. What is BBBY dividend?

BBBY forward dividend is $0.68.

3. What is BBBY dividend yield?

BBBY forward dividend yield is 17.94%.

Analyst Predictions

4. What is BBBY stock forecast (i.e., prediction)?

Based on BBBY analyst price targets, BBBY stock forecast is $10.62 (for a year from now). That means the average analyst price target for BBBY stock is $10.62. The prediction is based on 23 analyst estimates.

The low price target for BBBY is $5.00, while the high price target is $16.00.

BBBY analyst rating is Hold.

Analysis

5. BBBY buy or sell? What is BBBY Finny Score?

#{finnyScore:45}Our quantitative analysis shows 5 reasons to buy and 6 reasons to sell BBBY, resulting in Finny Score of 45.

6. What are the reasons to buy BBBY? Why should I buy BBBY stock?

Here are the reasons to buy BBBY stock:

  • Less discretionary categories such as linens, towels, and cookware offer some resiliency amid macroeconomic cyclicality. Registries across bridal, baby, and gift provide a stable stream of customers.
  • While the Bed Bath & Beyond concept is oversaturated domestically, buybuy Baby and Cost Plus World Market have some room for growth. E-commerce growth should be helped by the inclusion of pmall.com and OneKingsLane.
  • Bed Bath still has international growth potential. The first Bed Bath & Beyond store opened in Canada in 2007, followed by Mexico in 2008 through a joint venture.
  • BBBY forward dividend yield is 17.94%, higher than the industry (0.24%) and sector (0.55%) forward dividend yields. See BBBY forward dividend chart.
  • BBBY Price/Book ratio is 1.11, which is low compared to its industry peers’ P/B ratios. See BBBY forward Price/Book ratio chart.
  • BBBY Price/Sales ratio is 0.17, which is low compared to its industry peers’ P/S ratios. See BBBY forward Price/Sales ratio chart.
  • BBBY cash to debt ratio is 0.28, higher than the average industry (0.16) and sector (0.13) cash to debt ratio. See BBBY cash to debt chart.
  • BBBY Enterprise Value/Revenue multiple is 0.46, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See BBBY Enterprise Value/Revenue chart.

7. What are the reasons to sell BBBY? Why should I sell BBBY stock?

Let's look at the reasons to sell BBBY stock (i.e., the bear case):

  • Low customer switching costs, along with the proliferation of e-commerce and mass-merchant competitors, should weigh on long-term traffic and margin trends.
  • New homeowners represent a significant portion of home-related purchases, tying results to the housing market and housing turnover, which can be volatile.
  • Increased promotional activity across the industry, including couponing and free shipping for Bed Bath in particular, has created a challenging environment for home furnishing retailers and manufacturers in achieving gross margin gains.
  • BBBY stock price ($12.79) is close to the 52-week high ($13.17). Perhaps now is a good time to sell? See BBBY price chart.
  • BBBY quarterly revenue growth was -49.20%, lower than the industry and sector average revenue growth (0.81% and 0.78%, respectively). See BBBY revenue growth chart.
  • BBBY profitability is declining. The YoY profit margin change was -4.58 percentage points. See BBBY profitability chart.
  • BBBY average analyst price target ($10.62) is below its current price ($12.79). See BBBY price target chart.
  • BBBY short share of float is 75.80%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See BBBY short share of float chart.
  • BBBY short interest (days to cover the shorts) ratio is 8.11. The stock garners more short interest than the average industry, sector or S&P 500 stock. See BBBY short interest ratio chart.

Key Stats

8. What are BBBY key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for BBBY:

Metrics BBBY
Price $14.53
Average Price Target / Upside $10.62 / -26.88%
Average Analyst Rating Hold
Forward Dividend Yield 17.94%
Industry Specialty Retail
Sector Consumer Cyclical
Number of Employees 65,000
Market Cap $1.64B
Forward P/E Ratio -54.33
Price/Book Ratio 0.17
Revenue (TTM) $9.89B
YoY Quarterly Revenue Growth -49.20%
Profit Margin -5.51%

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