Why BBBY Stock Investors Should Buckle Their Seatbelts for Sept. 29

Why BBBY Stock Investors Should Buckle Their Seatbelts for Sept. 29

Big-box retail chain Bed Bath & Beyond (NASDAQ:BBBY) has been the target of eager meme-stock traders. However, the company’s financials will matter soon, as Bed Bath & Beyond has scheduled an earnings report and conference call for Sept. 29. The company needs to prove its value proposition to BBBY stock investors, as it’s undergoing a CEO transition and some analysts have issued low price targets on Bed Bath & Beyond shares.

Prior to the meme-stock mania of the 2020s, Bed Bath & Beyond was mainly known as a place to buy bath towels, shower curtains and other products for the home. Lately, though, Bed Bath & Beyond has been the poster child of short-squeeze pop-and-drops.

Traders who entered into the trade too late were handed sharp losses and may have given up on Bed Bath & Beyond. Sept. 29 might be a turnaround day, though, as the company will have an opportunity to show that it’s not just about the meme dreams in 2022.

What’s Happening With BBBY Stock?

Recently, BBBY stock made a trip that enriched some traders and impoverished others. Without a doubt, Reddit traders were involved as the shares sailed from $7 to $23 and then pulled back to $7.

The meme-stock crowd is a fickle one, so investors shouldn’t assume that another short squeeze is around the corner. Instead, they should focus on Bed Bath & Beyond’s fundamentals and business operations.

It’s a tough time for Bed Bath & Beyond, as the company is undergoing an executive-level transition. Specifically, the company has been searching for a new CEO since June. Currently, Sue Gove is Bed Bath & Beyond’s interim CEO.

However, two “sources familiar with the matter” reported that Gove will remain as Bed Bath & Beyond’s CEO for at least a year. So, at least the company has some time to find the right person for the job.

Sept. 29 Will Be a Key Date for Bed Bath & Beyond

It’s not an exaggeration to say that some analysts are extremely bearish on BBBY stock. That’s why Sept. 29 is so important. On that day, Bed Bath & Beyond will reveal its fiscal 2022 second-quarter financial results. The company will also host a conference call on that day.

Bed Bath & Beyond really needs to knock it out of the park and impress the company’s investors, as well as the analysts that cover the company. Not long ago, Goldman Sachs analyst Kate McShane issued a $2 price target on Bed Bath & Beyond.

In a similar vein, Telsey Advisory Group analyst Cristina Fernandez published a $3 price target on BBBY stock. We’re talking about share-price drops of 50% or more if these predictions turn out to be true.

For the soon-to-be reported quarter, analysts expect Bed Bath & Beyond to report an earnings loss of $1.59 per share. They also anticipate that the company will post $1.44 billion in quarterly revenues. This would represent a year-over-year decline of 27.3%.

What You Can Do Now

If Bed Bath & Beyond can beat those expected results, then BBBY stock might catch a bid. It would also help if the company’s management expresses optimism during the conference call.

Indeed, low expectations could actually help Bed Bath & Beyond and its investors. So, feel free to hold a few shares and get ready for a potentially make-or-break day for Bed Bath & Beyond.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.