The Bed Bath & Beyond stock price will be in the spotlight this week as the company publishes its earnings on Wednesday. The BBBY stock ended the week at $28.93, which was 35% below the highest level in June and 47% below the highest level this year. The firm has a market capitalization of more than more than $3 billion.
BBBY news. Bed Bath & Beyond has been in the spotlight this month because of its popularity by retail traders in platforms like Reddit and Stocktwits. This interest has made it a popular meme stock. This week, the stock could see more interest as the company publishes its quarterly results on Wednesday.
Analysts expect the results to show that the company made more than $1.87 billion in the quarter. Its Earnings per Share (EPS) is expected to come in at $0.08. There is a possibility that the firm will beat the consensus forecast due to the free publicity it has gained during the last quarter.
Also, according to Factset, most companies recorded earnings and revenue beat in the recent earning season. Still, BBBY has a poor track record of beating analysts forecasts. It has missed in eight of the past 10 earnings resleases.
Analysts at Bank of America are optimistic about the stock. They noted the key drivers will include the new product rollout by the firm and store resets that will make it an enjoyable place to shop. Further, they cited the ongoing closure of about 200 stores and potential pickup in the back-to-college and wedding registry business. They expect the shares will rise to $38.
The daily chart below shows that the BBBY stock has declined sharply from its highest level this month. The stock is trading at the 50% Fibonacci retracement level and is being supported by the 100-day and 50-day exponential moving averages (EMA). It is also slightly below the important resistance at $33.37, which was the highest level in May.
Therefore, the outlook for the stock before its earnings is neutral. Any drop below last week’s low at $27 will open the possibility of the shares falling to the next support at $23. This was the lowest level in April and May. On the other hand, a move above the resistance at $33 will open the possibility of it retesting its monthly high at $44.40.
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