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

Bed Bath & Beyond (BBBY Free Report) closed the most recent trading day at $17.86, moving -1.6% from the previous trading session. This change lagged the S&P 500’s 0.85% loss on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the home goods retailer had lost 10.02% over the past month, lagging the Retail-Wholesale sector’s loss of 2.48% and the S&P 500’s loss of 0.97% in that time.

Investors will be hoping for strength from Bed Bath & Beyond as it approaches its next earnings release. On that day, Bed Bath & Beyond is projected to report earnings of $0.03 per share, which would represent a year-over-year decline of 62.5%. Our most recent consensus estimate is calling for quarterly revenue of $1.98 billion, down 24.51% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.84 per share and revenue of $8.2 billion, which would represent changes of +183.17% and -11.21%, respectively, from the prior year.

Any recent changes to analyst estimates for Bed Bath & Beyond should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.67% higher within the past month. Bed Bath & Beyond is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Bed Bath & Beyond is holding a Forward P/E ratio of 21.61. Its industry sports an average Forward P/E of 17.6, so we one might conclude that Bed Bath & Beyond is trading at a premium comparatively.

We can also see that BBBY currently has a PEG ratio of 0.41. 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. BBBY’s industry had an average PEG ratio of 0.66 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 81, which puts it in the top 32% 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.

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