Bed Bath & Beyond (BBBY,$12.20) is in Wedbush Best Ideas List

Home goods retail company Bed Bath & Beyond  stock got added to  Wedbush’s  Best Ideas List.

Wedbush analyst Seth Basham boosted his share-price target to $18 from $15 and maintained his outperform rating on the shares.

Basham said that Bed Bath bounced back to positive comparisons in recent months and is on the cusp of a “dramatic improvement in profitability,". However, the stock continues to stay at distressed levels, he noted.

In a conservative forecast, Bed Bath earnings before interest, taxes, depreciation and amortization could reach almost $850 million in in 2022, according to Basham.

Tickeron's analysis shows: 

Momentum Indicator for BBBY turns negative, indicating new downward trend

BBBY saw its Momentum Indicator move below the 0 level on September 08, 2020. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 80 similar instances where the indicator turned negative. In 65 of the 80 cases, the stock moved further down in the following days. The odds of a decline are at 81%.

Current price $12.19 crossed the resistance line at $12.06 and is trading between $13.19 resistance and $12.06 resistance lines. Throughout the month of 08/07/20 - 09/09/20, the price experienced a -6% Downtrend. During the week of 09/01/20 - 09/09/20, the stock fell -12%.

Technical Analysis (Indicators)

Bearish Trend Analysis

The 10-day RSI Indicator for BBBY moved out of overbought territory on August 18, 2020. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 23 similar instances where the indicator moved out of overbought territory. In 18 of the 23 cases, the stock moved lower in the following days. This puts the odds of a move lower at 78%.

The Moving Average Convergence Divergence Histogram (MACD) for BBBY turned negative on August 20, 2020. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In 34 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 72%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.

BBBY broke above its upper Bollinger Band on September 01, 2020. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Bullish Trend Analysis

The Stochastic Indicator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

The 50-day Moving Average for BBBY moved above the 200-day moving average on August 24, 2020. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.

The Aroon Indicator entered an Uptrend today. In 91 of 121 cases where BBBY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 75%.

Fundamental Analysis (Ratings)

Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 71%. During the last month, the daily ratio of advancing to declining volumes was 1.29 to 1.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BBBY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.

The Tickeron PE Growth Rating for this company is 43 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating fairly steady price growth. BBBY’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is 15 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of 6 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.99) is normal, around the industry mean (11.15). P/E Ratio (0.00) is within average values for comparable stocks, (54.03). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (1.22). BBBY's Dividend Yield (6.29) is considerably higher than the industry average of (1.03). P/S Ratio (0.09) is also within normal values, averaging (0.82).

Contributor

Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.