Will BBBY’s Stock Rebound After A 15% Drop Last Week?

by Trefis Team
-9.42%
Downside
31.91
Market
28.90
Trefis
BBBY
Bed Bath & Beyond
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Bed Bath & Beyond’s stock (NASDAQ: BBBY), a home goods retailer, has declined by almost 15% over the last five trading days (one week) and currently stands at around $25. The company’s stock dropped in the last week after releasing a mixed fourth-quarter earnings report. BBBY’s total sales declined 15% year-over-year in Q4, even after adjusting for the sale of several non-core retail brands over the past year, and missed consensus estimates by $30 million. However, the company saw an easy year-over-year comparison for adjusted earnings per share (EPS) which grew 5% y-o-y and also beat consensus estimates by 9 cents. It should be noted that the broader S&P500 returned a marginal growth over the last five days. Now, is BBBY stock poised to decline further? We believe the company remains fundamentally overvalued and there could be room for more drop in the stock. Specifically, there is a 53% chance of a fall in BBBY’s stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on BBBY‘s Stock Chances of Fall for more details.

5D: BBBY -15%, vs. S&P500 1.1%; Underperformed market (2% likelihood event)

  • Bed Bath & Beyond stock declined 15% over a five-day trading period, compared to a broader market (S&P500) rise of 1.1%
  • A change of -15% or more over five trading days is a 2% likelihood event, which has occurred 62 times out of 2516 in the last ten years

10D: BBBY -12%, vs. S&P500 2.3%; Underperformed market (7% likelihood event)

  • Bed Bath & Beyond stock declined 12% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 2.3%
  • A change of -12% or more over ten trading days is a 7% likelihood event, which has occurred 164 times out of 2511 in the last ten years

21D: BBBY -18%, vs. S&P500 6.5%; Underperformed market (6% likelihood event)

  • Bed Bath & Beyond stock declined 18% the last twenty-one trading days (one month), compared to a broader market (S&P500) rise of 6.5%
  • A change of -18% or more over twenty-one trading days is a 6% likelihood event, which has occurred 153 times out of 2500 in the last ten years

E-commerce is eating into retail sales, but this might be an investment opportunity. See our theme on E-commerce Stocks for a diverse list of companies that stand to benefit from the big shift.

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