Bed Bath & Beyond share price forecast for the fourth quarter of 2021 as stocks plunge 25%
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Shares of Bed Bath & Beyond Inc. (NASDAQ: BBBY) fell 25% on Thursday after its latest quarterly results were announced. The company reported weaker-than-expected profits in the second quarter, largely affected by headwinds in the supply chain.
The company posted second quarter non-GAAP EPS of $ 0.04, missing Street’s consensus estimate of $ 0.52. Its GAAP earnings per share of $ -0.72 also missed expectations of $ 0.53. On the other hand, revenue for the quarter plunged 26% year-on-year to $ 1.99 billion, down $ 70 million from analysts’ average estimate.
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The company’s revenue forecast for FQ3 of $ 1.96 billion to $ 2 billion is also lower than Street’s consensus estimate of $ 2.02 billion, while its EPS forecast of 0.00 to 0 .05 is also lower than the average analyst estimate of $ 0.29.
BBBY seems undervalued
From a valuation perspective, shares of Bed Bath & Beyond appear to be significantly undervalued given the current forward price-to-earnings ratio of around 6.65, making the stock attractive to equity-focused investors. value.
In addition, its outlook for earnings growth of 68% in 2021 and 46% in 2022 could appeal to growth investors.
Therefore, while the company’s outlook is severely affected by supply chain constraints and rising inflation, its fundamentals still look exciting to discount hunters.
A rebound could be imminent
Technically, BBBY stocks appear to have recently plunged into oversold 14-day RSI conditions. However, the stock also appears to have found support around the $ 16.90 level, after creating a downward price gap.
Therefore, investors could aim for potential rebound earnings at around $ 23.50, or more at $ 29.85. On the other hand, if the stock price continues to fall, it could find support at $ 11.20, or lower at $ 4.52.
It might be time to buy BBBY
In summary, although Bed Bath & Beyond fell short of analysts’ expectations for the most recent quarterly results, this was mainly due to market risk rather than company-specific risks.
Therefore, if the market recovers, the prospects for the company could become more impressive. And with stocks plunging 25% on Thursday, it might be time to invest in BBBY stock.
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