Bed Bath and Beyond reported a fourth-quarter loss, resulting in a negative surprise for analysts. The home goods retail company also mentioned challenges slowing consumer demand.
The company incurred a loss of -92 cents, vs. profit of +3 cents expected by analysts polled by Refinitiv.
Revenue plunged -22% from the year-ago quarter to $2.05 billion, missing expectations of $2.07 billion.
Same-store sales fell -12% from the year-ago period. Same-store sales dropped -15% for the Bed Bath & Beyond banner and rose by low single digits for the BuyBuy Baby banner.
Digital sales decreased by -18% year-over-year.
CEO Mark Tritton mentioned that company plans to open 20 to 25 new BuyBuy Baby stores and remodel 130 to 150 Bed Bath stores this year. With the additional remodels of Bed Bath banner stores stores, the company would have remodeled roughly a quarter of the stores by the end of the fiscal year, according to Tritton.
However, Tritton did acknowledged in a CNBC interview that there are challenges to in demand, since households no longer get extra dollars from the government such as child tax credits. He is optimistic about the long-term prospects though.
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 .
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 .
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.
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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an operator of chain of home furnishings stores
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.
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