|Bid||13.16 x 34100|
|Ask||13.24 x 1100|
|Day's range||13.14 - 13.57|
|52-week range||13.14 - 24.74|
|Beta (3Y Monthly)||1.14|
|PE ratio (TTM)||5.19|
|Earnings date||8 Jan 2019|
|Forward dividend & yield||0.64 (4.59%)|
|1y target est||15.31|
Bed Bath & Beyond (BBBY) closed at $13.15 in the latest trading session, marking a -1.87% move from the prior day.
For the next four quarters, analysts are expecting Lowe’s Companies (LOW) to post EPS (earnings per share) of $5.42, which represents growth of 7.3% from $5.05 in the corresponding four quarters of the previous year. The revenue growth and share repurchases are expected to drive the company’s EPS growth. The revenue growth would likely be driven by the adoption of a new revenue recognition accounting standard, positive SSSG, and the addition of new stores.
On October 17, CNBC reported that Credit Suisse downgraded Lowe’s Companies (LOW) to “neutral” from “outperform” and also lowered its price target from $115 to $111. Credit Suisse analyst Seth Sigman stated, “Our key concern is that home prices will continue to moderate, at least temporarily, as higher rates weigh on affordability, and inventory creeps up. Of the 33 analysts that cover Lowe’s, 78.8% are favoring a “buy,” and 21.2% are favoring a “hold” rating.
Today, CNBC reported that Credit Suisse downgraded Home Depot (HD) stock from “outperform” to “neutral.” Credit Suisse lowered its price target from $222.00 to $204.00. The new price target represents an upside potential of 5.4% from its October 16 closing price of $193.58.
Could RH’s Price Correction Mean a Buying Opportunity? For the next four quarters, analysts expect RH (RH) to post adjusted EPS of $7.57, which represents a rise of 23.9% from its EPS of $6.11 in the corresponding four quarters of the previous year. This EPS growth is expected to be driven by revenue growth and the expansion of its net margin.
Could RH’s Price Correction Mean a Buying Opportunity? On the same day, analysts had an average price target of $156.94 on the stock, which represented a return potential of 41.6% from its price of $110.82. Although RH has fallen since its announcement of its fiscal 2018 second-quarter earnings on September 4, many analysts have raised their price targets on its stock.
As of October 8, RH (RH) was trading at $110.82, a fall of 26.7% since it announced its earnings for the second quarter of fiscal 2018 on September 4.
Its SSSG (same-store sales growth) failed to meet analysts’ expectations in both the first and second quarters of 2018. After posting its second-quarter earnings, management lowered the company’s SSSG (same-store sales growth) and EPS guidance for 2018, leading to a fall in the stock. Growth was driven by the addition of new stores, which was partially offset by a decline in SSSG.
Bed Bath & Beyond (BBBY) is struggling with issues like strained margins and soft comparable store sales over the past few quarters now.
Of the 22 analysts following Bed Bath & Beyond (BBBY), 4.5% say “buy” as of September 27 while 59.1% say “hold,” and the remaining 36.4% say “sell” recommendation. On the same day, analysts set an average price target of $15.31, which represents a potential return of 3.0% from its current stock price of $14.86.
Oil & Gas, Bed Bath & Beyond, Apple, Sony, PayPal Holdings highlighted as Zacks Bull and Bear of the Day
Valuation multiples help investors compare companies with similar business models. Of all the valuation multiples, we’ve opted for the forward PE multiple due to the high visibility in Bed Bath and Beyond’s (BBBY) earnings. The forward PE multiple is calculated by dividing the company’s stock price from analysts’ earnings estimates for the next four quarters.
Bed Bath & Beyond (BBBY) posted adjusted EPS of $0.36, which were 28.0% lower than analysts’ expectation of $0.50 for the second quarter of fiscal 2018. Also, year-over-year, the company’s EPS declined 53.2% from $0.77 in the second quarter of fiscal 2017.
For fiscal 2018’s second quarter, Bed Bath & Beyond (BBBY) posted a gross margin, EBIT margin, and net margin of 33.7%, 2.7%, and 1.7%, respectively. These margins had been at 36.4%, 6.5%, and 3.7%, respectively in the second quarter of fiscal 2017.
On September 28, SunTrust Robinson Humphrey upgraded Lowe’s (LOW) from “hold” to “buy” and raised its price target from $110 to $138. The new price target represents a return potential of 20% from its stock price of $114.52. Barron’s reported that Keith Hughes of SunTrust Robinson said that Lowe’s stock could rise 50% if the company manages to reclaim half of the difference between its SG&A (selling, general, and administrative) expenses and Home Depot’s expenses. It seems Lowe’s problems are more internal rather than as a result of competition.
For the next four quarters, analysts expect Bed Bath & Beyond (BBBY) to post revenue of $12.13 billion, which represents a fall of 1.9% from its $12.36 billion in the corresponding four quarters of the previous year.
Has RH Stock Bottomed Out? Of the 21 analysts covering RH (RH), 38.1% have given it a “buy” rating as of September 27, and 57.1% have given it a “hold.” About 4.8% have given it a “sell” rating. On September 10, KeyBanc upgraded RH from “sector weight” to “overweight” and set a price target of $166.
In fiscal 2018’s second quarter, Bed Bath & Beyond’s (BBBY) SSS (same-store sales) declined 0.6%, versus analysts’ expectation of an increase of 0.3%. The company’s SSS fell due to a decline in transactions at its stores, which was partially offset by an increase in the average transaction amount.
For fiscal 2018’s second quarter, Bed Bath & Beyond (BBBY) posted revenues of $2.94 billion, which were 0.9% lower than analysts’ expectation of $2.96 billion. The decline in SSS (same-store sales) of 0.6% compared to analysts’ expectation of an increase of 0.3% and led to lower-than-expected revenue.
Has RH Stock Bottomed Out? From the graph below, you can see that RH (RH) has outperformed analysts’ EPS expectations in four of the past five quarters. For the next four quarters, analysts expect RH (RH) to post EPS of $7.59, which represents a growth of 24.2% from $6.11 in the corresponding four quarters of the previous year.