In the latest trading session, Bed Bath & Beyond (BBBY) closed at $13.24, marking a -1.49% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.73%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 2.07%.
Heading into today, shares of the home goods retailer had lost 9.56% over the past month, outpacing the Retail-Wholesale sector's loss of 9.73% and lagging the S&P 500's loss of 7.09% in that time.
BBBY will be looking to display strength as it nears its next earnings release, which is expected to be December 19, 2018. On that day, BBBY is projected to report earnings of $0.17 per share, which would represent a year-over-year decline of 61.36%. Our most recent consensus estimate is calling for quarterly revenue of $3.04 billion, up 2.93% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.99 per share and revenue of $12.14 billion. These totals would mark changes of -36.22% and -1.67%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BBBY. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 13.46% lower within the past month. BBBY is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that BBBY has a Forward P/E ratio of 6.76 right now. For comparison, its industry has an average Forward P/E of 11.85, which means BBBY is trading at a discount to the group.
We can also see that BBBY currently has a PEG ratio of 6.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. BBBY's industry had an average PEG ratio of 1.49 as of yesterday's close.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 98, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BBBY in the coming trading sessions, be sure to utilize Zacks.com.
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