Bed Bath and Beyond Inc. (NASDAQ:BBBY) reported its most recent quarterly results on Wednesday pre-market. Its fiscal first-quarter results beat expectations on revenue but missed on earnings. The stock price popped more than 8% after the management issued an upbeat outlook on the full-year revenue.
BBBY non-GAAP EPS of $0.05 missed expectations by $0.03, while the GAAP earnings of -$0.48 came short by $0.58. Revenue for the quarter grew by nearly 49% to $1.95 billion, beating the consensus Street estimate by $80 million.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
From a valuation perspective, BBBY shares trade an attractive forward price-earnings ratio of 14.12. The company is on a path back to profitability after enduring a torrid period in the last 12 months. BBBY’s turnaround campaign inflated costs resulting in a lower than expected bottom line.
However, analysts on the company’s earnings growth this year and over the next five years. They expect the EPS to grow by a whopping 68% before increasing by 43% next year. Overall, BBBY has a compounded annual EPS growth expectation of about 73% for the next five years.
Therefore, the company’s future looks exciting for both growth and value investors. Now could be a great time to invest in BBBY shares.
Technically, Bed bath & Beyond shares have recently bounced off the 100-day moving average. The stock retains a bullish outlook following the rebound, but it is yet to hit overbought conditions. Given the company’s solid top-line guidance for the full-year results, the current rebound presents an opportunity to buy BBBY shares.
Investors looking to pounce on the momentum can target short-term profits at approximately $36.94. More optimistic investors can target extended rally profits at $44.33. On the other hand, the pullback will find an immediate support level at $27.55, while extended declines will likely bounce back off $23.67.
In summary, BBBY looks incredibly undervalued based on the forward P/E ratio. Its expected earnings growth provides a massive boost for the stock price going into Q3. The company’s current rebound still has momentum, as it is yet to hit overbought conditions.
Therefore, buying Bed Bath & Beyond in July 2021 could yield significant returns in the coming months.
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
There is good reason to be afraid. Previous down markets have seen declines in excess…
United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX) are two robust logistics companies. Both…
Canadian crypto mining firm Bitfarms sold roughly $62 million worth of Bitcoin (BTC) in June,…
Invezz does not provide financial advice. Our aim is to simplify information about investing, enabling…
Noma, a Japanese film studio, has announced that it is producing three feature films that…
Bitcoin (BTC) saw continued strength on June 21 as Wall Street trading opened with a…