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In the latest trading session, Bed Bath & Beyond (BBBY) closed at $22.29, marking a +0.09% move from the previous day. The stock lagged the S&P 500’s daily gain of 0.23%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.09%.
Coming into today, shares of the home goods retailer had gained 57.61% in the past month. In that same time, the Retail-Wholesale sector gained 1.44%, while the S&P 500 gained 3.34%.
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%. Meanwhile, our latest consensus estimate is calling for revenue of $1.98 billion, down 24.51% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for Bed Bath & Beyond. Recent revisions tend to reflect the latest 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.9% higher. Bed Bath & Beyond is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, Bed Bath & Beyond is currently trading at a Forward P/E ratio of 26.51. This valuation marks a premium compared to its industry’s average Forward P/E of 16.78.
Investors should also note that BBBY has a PEG ratio of 0.5 right now. 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 0.86 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 105, putting it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report
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