Bed Bath & Beyond (BBBY, $17.27) misses fiscal Q2 expectations
Bed Bath & Beyond reported its fiscal second quarter earnings that were lower than expected by analysts. The home goods retail company also cut its full-year profit outlook.
Bed Bath & Beyond’s adjusted earnings for the three months ending in August came in at 4 cents per share, well below the 52 cents per share expected by the Street.
Revenues fell -26% from the year-ago quarter to $1.98 billion, compared to analysts’ estimates of $2.06 billion.
Looking into fiscal year 2022, Bed Bath & Beyond predicts adjusted earnings in the range of 70 cents to $1.10 per share, down from its prior forecast of $1.40 to $1.55 per share. The company projects net sales in the range of $8.1 billion to $8.3 billion.
CEO Mark Tritton said that traffic slowed significantly in August and, therefore, sales did not materialize as expected. According to Tritton's statement, the spread of the Delta variant of COVID-19 led to a challenging environment for the company.
He also mentioned “ unprecedented supply chain challenges” in the industry that led to steeper cost inflation rising by month, especially later in the quarter, beyond the significant increases that were already anticipated by the company.
BBBY's Indicator enters downward trend
The Aroon Indicator for BBBY entered a downward trend on May 02, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 345 similar instances where the Aroon Indicator formed such a pattern. In of the 345 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on April 20, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on BBBY as a result. In of 75 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BBBY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The Moving Average Convergence Divergence (MACD) for BBBY just turned positive on April 11, 2023. Looking at past instances where BBBY's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
Following a +6 3-day Advance, the price is estimated to grow further. Considering data from situations where BBBY advanced for three days, in of 274 cases, the price rose further within the following month. The odds of a continued upward trend are .
BBBY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BBBY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (2.291) is normal, around the industry mean (6.805). P/E Ratio (23.981) is within average values for comparable stocks, (24.742). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.645). BBBY has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.037). P/S Ratio (0.001) is also within normal values, averaging (67.649).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 Profit vs. Risk Rating rating for this company is (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 76, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an operator of chain of home furnishings stores
Industry SpecialtyStores
BBBY and
Correlation & Price change
A.I.dvisor indicates that over the last year, BBBY has been loosely correlated with GME. These tickers have moved in lockstep 38% of the time. This A.I.-generated data suggests there is some statistical probability that if BBBY jumps, then GME could also see price increases.
| Ticker / NAME | Correlation To BBBY | 1D Price Change % | ||
|---|---|---|---|---|
| BBBY | 100% | N/A | ||
| GME - BBBY | 38% Loosely correlated | +0.44% | ||
| HNST - BBBY | 38% Loosely correlated | N/A | ||
| PRTYQ - BBBY | 33% Loosely correlated | -3.38% | ||
| BARK - BBBY | 32% Poorly correlated | +6.86% | ||
| FND - BBBY | 30% Poorly correlated | -0.42% | ||
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