Category Archives: Hot Stocks

Bed Bath & Beyond Stock Tanks on Weak Guidance

Bed Bath & Beyond Inc. (Nasdaq:bbBY) shares fell more than 18% on Thursday, as the company’s 2018 earnings guidance is far from consensus, and investors are questioned about the company’s navigation in a harsh retail environment. ability.

On the surface, the fourth quarter of Bed Bath&Beyond does not seem bad.

The company announced earnings per share of $ 1.48, higher than the market expected $ 1.41. The fourth quarter revenue was $3.72 billion, most of which was in line with Wall Street forecasts.

Same store sales are also a bright spot. Comps fell only 0.6% this quarter, and the market is generally expected to drop 2.3%.

Bed Bath & Beyond even increased its quarterly dividend by 1 cent to 16 cents per share.

However, the blockbuster that has caused investor confidence is Bed Bath & Beyond’s guidance that earnings per share for 2018 will be “as low as $2”. Analysts had expected EPS of $2.77 in 2018.

The guidance shows that Bed Bath & Beyond will continue to go down the same-store sales, profit margins and revenue decline this year. In the past 10 quarters, the same-store sales growth rate was negative in 8 quarters, and the gross profit margin decreased from 41.3% in FY2012 to 35.9% today.

For Bed Bath and Beyond investors, the situation has become quite bad. In the past three years, the stock price has dropped by 75.8%. However, analysts say things may get worse from here.

Simeon Gutman, an Morgan Stanley analyst, said that the business is unlikely to improve in 2019 and that the 2019 forecast for earnings per share may drop to around US$2.

Gutman said: “The company’s gross profit reserves are still under pressure and have fallen by 500 basis points in the past six years. “Savings turning online are obviously damaging to profit margins, and so is the upgrade promotion environment. ”

LOS ANGELES, CA - APRIL 10: Customers carry bags from Bed Bath & Beyond store on April 10, 2013 in Los Angeles, California. The home goods retailer is expected to release fourth-quarter earnings figures after the closing bell. (Photo by Kevork Djansezian/Getty Images) KeyBanc analyst Bradley Thomas said that long-term investors should remain cautious until Bed Bath & Beyond shows clear signs that its investment efforts are paying off. “We support management’s investment in the enterprise and still hope they start to benefit from the top line,” said Thomas.

“Ultimately, we are still worried that with the rapid development of the consumer/retail industry, potential trends may become worse.”

Both Morgan Stanley and Key Banc have BBBY stocks with a “low” rating and a $16 price target.

Syria Crisis Doesn’t Affect Bristol-Myers and AMZN

No, I don’t mean to ignore Syria. I will not forget what President Trump might say to Russia, especially when I think he wrongly said it was the worst, even during the Cold War. Perhaps he is not familiar with the Cuban missile crisis. But the fact is, “By Myers (BMY) Theorem” – such as: “What is the relationship between Syria and Bristol Myers’s price income multiple?” – There is a lot to play here.

If you can’t find any kind of discount on stocks that lack common points with Russians, what will happen? Fundamentals prevail – Now that the fundamentals on the eve of the earnings season look pretty good.

Syria Crisis Doesn't Affect Bristol-Myers (It Could Help Amazon): Cramer Insider
For example, oil stocks – an unpopular sector – eventually reacted to and heightened tensions in the Middle East. I don’t believe this is long-term, but for a transaction, it looks very delicious. My Action Alert The California Club Charity Trust continues to adhere to Cimarex (XEC) before our monthly club conference call on Thursday. After all, the stock price fell so much that it was completely out of sync with the stock market.

The so-called “cloud king” is also entirely available here. However, I think that drug stocks are being integrated after they have improved.

But do you want to know what I think can be loudest here? Action Alert blesses Amazon (AMZN).

You have a president who focuses on Russia and the so-called “false news” report. This means that he may not have the bandwidth to attack Amazon for a while – this means that the stock that is at a critical technology level may actually take off.

What about Facebook (FB)? I think CEO Mark Zuckerberg’s Capitol Hill testimony is going well, but we never got what I wanted – a true external investigator reporting to the Facebook board. This person can see that the company is truly following its own rules and digging out any past violations that should be radiant.