|Bid||17.31 x 1300|
|Ask||17.51 x 800|
|Day's Range||17.07 - 17.59|
|52 Week Range||10.46 - 21.45|
|Beta (3Y Monthly)||1.60|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jun 25, 2019 - Jul 1, 2019|
|Forward Dividend & Yield||0.64 (3.77%)|
|1y Target Est||17.87|
Management is asking shareholders to trust in their plan, but what do they have to show for it?
A consortium of major shareholders is pressuring the management team, but company leadership wanted to leave investors with these key takeaways after a tough fiscal 2018.
Bed Bath & Beyond Inc. (BBBY) is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front.
SIOUX FALLS, SD / ACCESSWIRE / April 16, 2019 / Chipotle Mexican Grill, Shopfiy and Bed Bath & Beyond have topped MarketBeat's list of most-upgraded stocks during the month of April. These three stocks ...
From one perspective, Wayfair (NYSE:W) is being treated like most tech stocks. Wayfair stock has a market capitalization of nearly $14 billion despite the fact that Wayfair is unprofitable, even on an adjusted EBITDA basis.Source: Shutterstock From another perspective, however, Wayfair stock price might be considered cheap: its price-sales multiple of two is among the lowest of all 'tech' stocks. * 7 Dental Stocks to Buy That Will Make You Smile The argument over Wayfair stock price, then, seems to come down to whether it truly is a "tech" stock. Certainly, the company's online business model seems to suggest that it is.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, at the end of the day, there's also an argument that Wayfair is simply a furniture company that sells its products online. If that's the case, then W stock might be significantly overvalued because furniture companies are not getting much credit in this market. The Cyclical Problem Facing W StockOne of the more favorable aspects of many newer tech stocks with high valuations is that their exposure to economic cycles shouldn't be that severe. The revenue of a "software-as-a-service stock" like Salesforce.com (NYSE:CRM), for instance, should stay reasonably steady even as the economy ebbs and flows.A company might cut a few SaaS licenses if it lays off sales staff. But customers of Salesforce.com or Workday (NASDAQ:WDAY) or even the cloud unit of Amazon.com (NASDAQ:AMZN) aren't going to end their contracts in the middle of a recession.Even some consumer plays - think Netflix (NASDAQ:NFLX) or Spotify (NYSE:SPOT) - should be similarly resilient. As Josh Enomoto pointed out late last year, Netflix might even be counter-cyclical; consumers might eliminate their more expensive cable subscriptions, accelerating the shift to Netflix's streaming services.That is clearly not the case with Wayfair. The furniture business in particular is enormously cyclical. So, too, are many of the company's other key categories, like decor and appliances. And the obvious risk facing Wayfair stock is that the U.S. is in the tenth year of an economic expansion. Wayfair's growth has been impressive over that stretch, but what happens when the economy inevitably slows down? Should the Wayfair Stock Price Be This High?The price of Wayfair stock might not seem like a concern right now, particularly as stock markets look poised to re-take their all-time highs. But the fact is that other similar, albeit mostly brick-and-mortar, companies, already are pricing in the risk of a recession.Most furniture retailers and manufacturers trade in the range of 10 times to 12 times their earnings. La-Z-Boy (NYSE:LZB) might be the most expensive of the group; backing out net cash, it trades at about 14 tines its earnings, as does volatile RH (NYSE:RH).Home-decor retailers have been hammered. Bed Bath & Beyond (NASDAQ:BBBY), Tuesday Morning (NASDAQ:TUES), and Pier 1 Imports (NYSE:PIR) all are struggling. Williams-Sonoma (NYSE:WSM) is holding up better, but it still has traded sideways for over three years now.Cyclical fears aren't the only factor holding many of those stocks down. In fact, they likely aren't the biggest factor behind their weakness. Wayfair's impressive top-line growth, and share gains by Amazon and other online retailers, are key reasons why stocks in the furniture-retail sector have struggled. But even growing companies like RH and La-Z-Boy are being valued cheaply.And taking a broader look, most cyclicals - auto manufacturers, boating plays, equipment stocks like Caterpillar (NYSE:CAT) - are being valued as if the end of the cycle is closer than the beginning. A decade into an upcycle, that's not surprising. What is surprising, perhaps, is that W stock doesn't seem to be getting the same treatment. Be Careful Out ThereThe core argument around Wayfair stock really comes down to whether Wayfair's market is viable. Its revenue growth has been impressive,. But those who are bearish on Wayfair stock argue that the company's higher sales simply are being purchased by huge advertising costs and free shipping.The jury's still out on that debate. But the cyclical aspect of the business has to be a concern. When the economy turns, Wayfair likely is going to take a hit. That, in turn, means it has to convince investors of the validity of its business model before that happens.If the market thinks Wayfair will be a dominant retailer for decades to come, Wayfair stock can ride out temporary weakness by the company. If the battle over Wayfair's outlook is still raging, and the economy turns south, however, W stock is going to plummet.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post The One Big Catch With Wayfair Stock appeared first on InvestorPlace.
Despite a reasonably strong quarter and solid full-year earnings guidance, these investors reiterated their call for change.
Bed Bath & Beyond Inc. is taking steps to improve its profitability, but is hurting its sales in the process. The home goods retailer reported fourth-quarter adjusted earnings per share of $1.20, beating the FactSet consensus of $1.11. “Of course, actions like these do have a near-term impact on sales, but they benefit our overall profitability,” said Chief Executive Steven Temares on the earnings call, according to a FactSet transcript, referring to a coupon strategy that limits the availability of discounts.
How Did Bed Bath & Beyond Fare in the Fourth Quarter?(Continued from Prior Part)Fourth-quarter EPSBed Bath & Beyond (BBBY) posted a loss of $1.92 per share in the fourth quarter. However, removing special or one-time items, the company’s
It's one of the more intriguing questions on Wall Street lately: Is beaten-up general merchandise retailer Bed Bath & Beyond (NASDAQ:BBBY) in the early stages of a huge turnaround? BBBY stock is down more than 55% in the past two years compared to a 23% increase in the S&P 500 index in that period.Ask activist investment firms Legion Partners, Macellum Advisors and Ancora Advisors -- all of which have recently built sizable stakes in BBBY stock -- and their answer is a resounding "yes." They argue that Bed Bath & Beyond is a valuable retail operation which has been mismanaged over the past several years, and that under the right management, things could turn around quickly, which would lead to a huge pop in BBBY stock.But, look at the fourth-quarter numbers that Bed Bath & Beyond reported on Wednesday, and the answer is a resounding "no." Comparable sales continue to drop. Gross margins are still falling. Opex rates are still rising. Profits are still eroding. In short, nothing about the current numbers implies that BBBY stock is even close to any type of turnaround.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhere do I sit on the BBBY turnaround debate? I don't think it's going to happen. New management could turn things around, and in the event that they do, Bed Bath & Beyond stock could be due for a huge rally towards $40 over the next several years. But, the chances of that happening are very slim. It's far more likely that, regardless of the management team, the retailer continues to be challenged by adverse secular trends, and that the numbers remain weaker for longer. In that scenario, BBBY stock could be due for a pullback toward levels below $15. * 10 Dow Jones Stocks Holding the Blue Chip Index Back All in all, BBBY stock doesn't look great here. There's a slim chance the stock is on the cusp of a breakout to $40. But, it's far more likely the stock will retreat to below $15. How a Turnaround Could HappenThere's a slim chance that Bed Bath & Beyond does get its act together, ends the current slide, and turns into a steady retail operation with healthy growth prospects.How does that happen? The company shutters under-performing stores, and reallocates all investment back into the remaining stores to dramatically improve the in-store customer experience and end what has been a multi-year decline in in-store sales. This process would include giving the remaining stores a physical makeover, cleaning up inventory, implementing technology, improving floor displays, and adding in-store personnel.At the same time, the company needs to continue to build out its digital business, and start to integrate its offline operations with its online operations by more robustly developing things like buy-online, pick-up-in-store. They also need to cut out lower margin items, sacrifice those sales, and pivot customers towards higher margin categories, while reducing reliance on a coupon-focused sales strategy.If the company does all this (and that's a lot), there is a possibility for revenue growth to come back into the picture, and for gross margins to head higher alongside opex leverage. If so, Bed Bath & Beyond could be looking at $12 billion-plus in sales by 2025, on roughly 5% operating margins. That combination could easily produce $4 earnings per share of BBBY stock.Based on a historically average 10-times forward multiple, that implies a fiscal 2024 price target of $40. Discounted back by 10% per year, that equates to a fiscal 2019 price target for BBBY stock of nearly $25. Thus, in an "everything goes right" scenario, upside in Bed Bath & Beyond stock looks good from here. Why It Likely Won't HappenEven if management does everything right (they close under-performing stores, improve the remaining store base, build out the omni-channel business, and reduce reliance on lower margin sales), there is still only a slim chance that all those moves produce a healthy return.Why? The harsh reality here is that the consumer world has moved on from Bed Bath & Beyond and the company is so far behind its peers that even modest improvements will still leave them behind the curve. For example, let's say Bed Bath & Beyond does go big into omni-channel commerce and builds a really strong buy-online, pick-up-in-store program. Walmart (NYSE:WMT) and Target (NYSE:TGT) already have that at scale, while Amazon (NASDAQ:AMZN) is working on drone delivery, and all three of those companies sell pretty much the same stuff as Bed Bath & Beyond at roughly the same prices, or lower.So, as a consumer, even if Bed Bath & Beyond successfully built out its omni-channel business, I have no reason to all the sudden stop shopping at Walmart, Target, and Amazon, and go to Bed Bath & Beyond. The same is true for in-store improvements, an expanded digital business, so on and so forth. * 8 Risky Stocks to Watch as Earnings Season Kicks Off Of course, the one thing Bed Bath & Beyond can do is lower prices, but that'll hurt gross margins, and ultimately put them in a price war with Amazon, which is a battle they won't likely win.All in all, then, the outlook for a Bed Bath & Beyond turnaround here is bleak. Consumers have moved onto other stores, and there's no compelling reason for them to come back. So long as this remains true, BBBY's earnings will likely be stuck around $2 per share. Assuming that's where earnings land by 2025, the same math above produces a 2019 price target for BBBY stock of under $13. Bottom Line on BBBY StockRoughly speaking, I think there's an 80% chance BBBY stock ends the year around $13, and a 20% chance the stock pops to $25. Those probabilities produce a weighted average price target of right around $15. With BBBY stock currently trading substantially above that level, the present risk/reward asymmetry on the stock is not great.As of this writing, Luke Lango was long TGT and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * FAANNG Stocks, Ranked From Cheapest to Most Expensive * 7 Stocks With a Lot on the Line This Earnings Season * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Compare Brokers The post Is A Bed Bath & Beyond Stock Turnaround Just Around The Corner? appeared first on InvestorPlace.
Amid all of the news swirling around the activist investors targeting retailer Bed Bath & Beyond, shareholders received a bit of good news this week.
It may not be too late to save the company, as it still has a good balance sheet. But major upheaval is needed.
Stocks that moved substantially or traded heavily on Thursday: Tesla Inc., down $7.64 to $268.42 The electric car maker and partner Panasonic are putting on hold plans to expand their Gigafactory, according ...
Bruce Goldfarb, Okapi Partners founder, president and CEO, joins "Squawk Box" to discuss what could happen as activist investors focus on Bed Bath & Beyond.