Bed Bath & Beyond (BBBY) shares rallied 62.1% in the last trading session to close at $44.19. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.8% gain over the past four weeks.
Bed Bath & Beyond stock skyrocketed after the company’s announcement to launch three more Owned Brands, as part of its transformation strategy. With the launch of the three new brands, the company will have launched six Owned Brands so far this year, keeping it ahead of track to achieve its target of introducing at least eight new Owned Brands in fiscal 2021. The launch of three new brands – Our Table, Wild Sage and Squared Away – will expand the company’s assortments in the bed, bath, kitchen and dining, storage and organization as well as home décor categories. These brands are expected to be launched in the coming weeks.
Management expects the sales penetration of Owned Brands to grow from 10% to nearly 30% within the first three years. The company’s transformation strategy focuses on modernizing its assortment and sustainably expanding margins and revenues through aggressive product development.
Price and Consensus
This home goods retailer is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +104.6%. Revenues are expected to be $1.86 billion, up 42.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Bed Bath & Beyond, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BBBY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report
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