Bed Bath and Beyond is a home décor retailer established in 1971 and began selling its shares in 1992 on the NASDAQ stock market (Corporate Responsibility, n.d.). Today its common stock is trading at $41.19 (Bed Bath & Beyond Inc. Common, 2016), 49% below the “March 2014 closing peak of $80.48” (Lara, 2016). This analysis will explore Bed Bath and Beyond Inc.’s current situation as it relates to the stock market, past performance, and how it will compete for future growth, to determine if we should add this company to our portfolio and what the expected rate of return should be if our hedge fund decides to invest.
Analysis of Bed Bath & Beyond Inc.
Bed Bath & Beyond’s stock prices have been steadily declining since the second quarter of 2015 (Table 1) and are currently trading at $41.19 per share, only pennies above its 52 week low of $41.15 (Bed Bath & Beyond Inc. Common, 2016). This company is best known for using its blue and white 20% coupon, and according to USB analysts, the “redemptions have squeezed the retailer’s margins for the past 15 quarters” (Moise, 2016).
Table 1 Stock Chart for Bed Bath & Beyond
Bed Bath & Beyond Inc. (BBBY) Stock Chart. (2016, October 07). Retrieved from http://www.nasdaq.com/symbol/bbby/stock-chart?intraday=off
Amazon and Wal-Mart are offering similar home décor items for sale online, and competing for customer loyalty through membership programs charging annual fees for premium services that include free shipping to keep customers loyal (Lara, 2016). Customer’s buying habits are shifting from brick-and-mortar stores. However, this company could easily redesign its stores to showcase or showroom the items its sells while directing the majority of purchases are generated onli...
... middle of paper ...
... week low of $41.15 (Bed Bath & Beyond Inc. Common, 2016). It has been a firm that has shown small but steady increases in sales and revenue for the past four years (Appendix, Bed Bath & Beyond Inc., 2016). Although this company’s net income growth has been declining over the last three years its gross profit margin is higher than industry the average at 38.17% (Bed Bath & Beyond Inc., 2016). Overall the firm has maintained respectable net profits only recently increasing its debt in recent years to repurchase stock and acquire a firm to help it compete in the market, a healthy balance between debt and capital. For these reasons, our firm should purchase 2500 shares of NASDAQ stock symbol BBBY today and take advantage of the December ex-dividend of $0.125 and hold the stock until a minimum of share price of $62.00 for a potential of 50% return on our investment.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Analysis of Bed Bath & Beyond Inc. Stephanie M. Brown Saint Leo University Professor: Dr. Cernata C. Morse Table of Contents Abstract 3 Analysis of Bed Bath & Beyond Inc. 4 Poised for Growth 4 Compared to the Competition 6 Conclusion 7 Tables Table 1 5 Table 2 6-7 References 8-9 Appendix 10-14 Abstract Bed Bath & Beyond (BBBY) is a publicly traded company that trades on the NASDAQ, (Bed Bath...Common, 2016), an... [tags: Income statement, Revenue, Expense, Dividend]
1742 words (5 pages)
- Bed Bath and Beyond's Business Risk Bed Bath & Beyond Inc. is a nationwide chain of 575 retail stores selling domestics merchandise (bed linens, bath items, and kitchen textiles) and home furnishings (kitchen and tabletop items, small appliances, and basic house wares). In 2003 Bed Bath and Beyond reported annual revenues (gross profit) of approximately $1.8 billion, net income of $339 million and net sales of $4.5 billion, representing 22% growth in revenue and 32% growth in income as compared to the previous year.... [tags: Business Analysis ]
838 words (2.4 pages)
- I am currently majoring in Finance Management. Most of the time people think of finance as just managing money. However, finance is needed for so much more. The finance industry deals with starting businesses, developing new products, expanding markets, as well as everyday things like saving for retirement, purchasing a home, and even insurance. The stock market, asset allocation, portfolio analysis, and electronic commerce are all key aspects in finance. In this paper, I will explain how these features play a vital role in the industry, along with the issues that come with these factors.... [tags: Investment, Finance, Stock, Stock market]
2185 words (6.2 pages)
- Proposed Solution To remain competitive, Bed Bath and Beyond must upgrade its outdated and inefficient inventory system to a new more cost-efficient real-time solution. A real-time inventory system will substantially improve customer service, reduce inventory costs, and make it quick and easy for employees to find product in each store. Background From the personal experience of an employee, we have gained insight that although Bed Bath and Beyond provides one of the best customer service experiences in retail, improvements can always be made.... [tags: Retailing, Supply chain management, Management]
1096 words (3.1 pages)
- Geoffrey Chaucer’s The Canterbury Tales is the story of a large group of men and women going to Jerusalem on a pilgrimage. Each of the travellers introduces themselves and tells an interesting tale during their journey. One of the travellers, the Wife of Bath shares her views on social relationships between men and women. The fourteenth century is viewed as having a patriarchal dominated society. However, the Wife of Bath, Alisoun, is a strong believer in female maistrie, control in the marriage.... [tags: The Wife of Bath Essays]
1316 words (3.8 pages)
- The Wife of Bath is a wealthy and elegant woman with extravagant, brand new clothing. She is from Bath, a key English cloth-making town in the Middle Ages, making her a talented seam stress. Before the wife begins her tale, she informs the audience about her life and personal experience on marriage, in a lengthy prologue. The Wife of Bath initiates her prologue by declaring that she has had five husbands, giving her enough experience to make her an expert on marriage. Numerous people have criticized her for having had many husbands, but she does not see anything immoral about it.... [tags: The Wife of Bath Prologue Essays]
1242 words (3.5 pages)
- In the Middle Ages, when The Canterbury Tales was written, society became captivated by love and the thought of courtly and debonair love was the governing part of all relationships and commanded how love should be conducted. These principles changed literature completely and created a new genre dedicated to brave, valorous knights embarking on noble quests with the intention of some reward, whether that be their life, lover, or any other want. The Canterbury Tales, written in the 14th century by Geoffrey Chaucer, accurately portrays and depicts this type of genre.... [tags: The Wife of Bath Essays]
960 words (2.7 pages)
- The beginning of this passage from the Wife of Bath 's Tale opens with the Wife of Bath describing how she holds a "mouses herte" that is of little value and worthless, "worth a leek." The Wife of Bath is portraying herself as fragile as a mouse, which is ironic considering she hopes for her husband 's to die in order to attain their assets. The genre is Romance, but this passage describes her marriages as false romances. There is trickery and deception involved with the Wife of Bath 's romances.... [tags: Love, Marriage, Woman, The Wife of Bath's Tale]
1212 words (3.5 pages)
- The Wife of Bath One of the most interesting and widely interpreted characters in The Canterbury Tales by Geoffrey Chaucer is the Wife of Bath. She has had five different husbands and openly admits to marrying the majority of them for their money. The wife appears to be more outspoken and independent than most women of medieval times, and has therefore been thought to symbolize the cause of feminism; some even refer to her as the first actual feminist character in literature. Readers and scholars probably argue in favor of this idea because in The Canterbury Tales, she uniquely gives her own insight and opinions on how relations between men and women should be carried out.... [tags: The Wife of Bath Essays]
956 words (2.7 pages)
- The institution of marriage has always been viewed as a lifetime bond which should never be broken. In addition, there are certain general vows that each party usually takes- to be faithful, obedient, and loving. For years, this verbal agreement was enough to keep even the toughest of marriages together for a long time. Enter the Wife of Bath, the polar opposite of the medieval woman. She was loud, brash, and deceitful- making her seem like the least likely person to get married. However, she ends up marrying five men.... [tags: The Wife of Bath Essays]
1309 words (3.7 pages)
- My First Day Of The University Of Arkansas
- Middle Age And Middle Class Family Living On The Coast
- Sex Is Everywhere Is America
- Are Drug Addicts Bad People Who Choose For Fall? Into A Life Of Deprivation?
- The Police Role Today Within The Context Of Homeland Security
- Intelligence From The Standpoint Of Testing, Measurement, And Application Of Theory