Bed Bath and Beyond ($BBBY) was once looking like it was beyond salvation - now, analysts are calling the home goods retailer's stock oversold, and are predicting a bounceback.
The stock got a big boost Monday morning on September 30 when Wedbush analysts said sales could stabilize, or even rise, thanks to the Bed Bath & Beyond's plans to remodel some stores, launch private-label brands, and jettison non-core assets in sales, like real estate. Shares rose 7% Monday. Still, the stock is down on the year.
Looking at Bed Bath & Beyond's job postings, it is clearly not acting like a company that is going out of business. In fact, it grew retail and part-time roles (including warehouse, stocking, cashiers and sales associates) 51% from quarter ending June 30 until September 30.
What's more, is Bed Bath & Beyond's ratings growth. Ratings via the Apple App Store reflect a brand's ability to attract users over time (who rates the same app twice, let alone once!?) and Bed Bath & Beyond's numbers reflect a doubling of total reviews submitted since 2018. And the app's rating - we're not exaggerating, even a little bit here - is higher than WeWork, and Slack, and Uber, and Lyft. So perhaps all the market belly-aching over how doomed Bed Bath and Beyond was, was a hair overblown.
Analysts at Wedbush also suggested the company could provide some relief to investors by naming a new CEO on its next earnings call - scheduled for October 2, when the market is looking for EPS of $0.29, according to analysts tracked by Zacks Investment Research. Longtime exec Steven Temares stepped down as CEO in May, and was replaced by interim CEO Mary Winston, and analysts' expectation that a new exec could coincide with asset sales is just another factor that could boost shares.
Wedbush analysts predicted that the sum of Bed Bath & Beyond's parts today, is like worth more than the company's market capitalization (so if it drags its feet on a CEO installation process - there could be a chance a private equity firm steps in to make a bid).
But then, there are signs that Bed Bath & Beyond is still facing an uphill battle. Our final chart tracks the company's Facebook ($FB) Talking About Count - or, the degree to which people on the social network are talking up a given brand - and it's clear that on a percentage basis, the retailer is falling out of favor.
The question is, between its new management, their plans for efficiency, and the digital value the company is creating - is Bed Bath and Beyond actually back? We'll know more soon.
About the Data:
Thinknum tracks companies using information they post online - jobs, social and web traffic, product sales and app ratings - and creates data sets that measure factors like hiring, revenue and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.
Further Reading:
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