Some investors are seeing hope for Bed Bath & Beyond (NASDAQ:BBBY) stock as the company’s upcoming earnings announcement on Jan. 10 draws closer. The company has scheduled its earnings call for next week to discuss the numbers, which go through November.
Now below $300 million, Bed Bath & Beyond’s market capitalization has fallen in recent weeks as analysts speculate that the company won’t survive 2023. If the company can survive, however, Bed Bath & Beyond is undervalued by almost any measure. Sales for the year are expected to reach $6 billion.
Here’s what investors should know about BBBY stock as earnings quickly approach.
BBBY Stock: Hope for Beyond
The last few years have been brutal for retailers.
For one, many small mall stores have been bought up by companies working with landlords like Simon Property Group (NYSE:SPG). The department stores that once anchored those malls — like Macy’s (NYSE:M) and Nordstrom (NYSE:JWN) — are also downsizing or going bankrupt.
It’s no better outside the mall. Tuesday Morning (NASDAQ:TUEM) is expected to go under the hammer through Retail Ecommerce Ventures. Previously, they have taken brands like Pier 1 online and closed brick-and-mortar outlets.
Bed Bath & Beyond tried to escape this fate by becoming home to curated house brands under former CEO Mark Tritton. The idea was to become something like a cross between Target (NYSE:TGT) and Restoration Hardware (NYSE:RH). But Tritton ran out of time and was let go in June 2022.
BBBY stock also spent some time as a “meme stock” in 2021 before GameStop (NYSE:GME) Chairman Ryan Cohen sold his stake this past summer. The company once owned several other chains like Cost Plus World Market as well, which it sold. It still owns Buy Buy Baby, a baby products chain once considered highly valuable.
Since June, CEO Sue Gove has been fighting to save Bed Bath & Beyond, closing stores and consolidating operations. The November numbers will show to what extent Gove has succeeded.
What Happens Next?
Come earnings next week, analysts will ask CEO Sue Gove a lot of questions about December. If they like the answers, BBBY stock could rise again. They will also likely ask about letters from the U.S. Securities and Exchange Commission (SEC) about Bed Bath & Beyond’s 2021 numbers.
If analysts don’t like what they hear, bankruptcy may be the only way out.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
On the date of publication, Dana Blankenhorn did not hold (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.