Bed Bath and Beyond seems well managed

Retail is in recovery, so I'm adding BBBY to hlep my portfolio recover.

By Jim Van Meerten Apr 21, 2011 10:47AM
It's always nice when a store you like to shop in becomes a success. Bed Bath and Beyond (BBBY) is that kind of store.  I'm a kitchen gadget freak, so I love this store. 

I try not to be an impulse shopper, but as I wander the store I sometimes find bargains I didn't expect and can't pass up. Today I can't pass up the stock. 

Same-store sales are up 7% year over year.  The company is on target to add 40 new stores this year and another 40 to 50 next year. Margin squeezes have been offset by savings in SG&A so I think this looks like a well managed company. The price is on a roll.

Bed Bath & Beyond (BBBY) is a nationwide operator of superstores selling predominantly high-quality domestics merchandise and home furnishings typically found in better department stores.
 
Technical reasons to consider:
  • 96% Barchart technical buy signal
  • Trend Spotter buy signal
  • 11 new highs and up 25.10% in the last month
  • Relative Strength Index 80.94% and climbing
  • Trades around 57.02 with a 50 day moving average of 49.28
Fundamental reasons to consider:
  • Wall Street brokerage analysts are high on this stock
  • They have published 9 strong buy, 2 buy and 14 hold recommendations
  • Sales are expected to increase by 7.40% this year and 7.00% next year
  • Earnings are estimated to increase by 15.30% this year, 14.40% next year and 13.41% next 5 years
Investor Sentiment considerations:
  • Stock is widely followed on Motley Fool with 1636 individual investors giving an opinion
  • CAPS members vote 988 to 202 that the stock will beat the market
  • The more experienced All Stars vote the same way by 402 to 44
Bed Bath and Beyond (BBBY) should be on you watch lists.

 
I'm making a few changes to my Wall Street Survivor portfolio by deleting Stryker (SYK) and Research in Motion (RIMM) and adding Bed Bath & Beyind (BBBY) and Gildan Activewear (GIL)

Jim Van Meerten is an analyst for  Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs onBarchart.com  in his daily blog -- Barchart Portfolio Blogs.

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