Is Bed Bath (NASDAQ:BBBY) stock way too aggressive for baby boomers?


USD 3.24  0.09  2.70%   

It appears Bed Bath will continue to recover much faster as its share price surged up 1.25% today. The entity current daily volatility is 13.33 percent, with a beta of 3.02 and an alpha of 0.98 over DOW. Whilst many millenniums are getting more into current market swings, it makes sense to break down Bed Bath Beyond. We will look into some reasons why it is still possible for Bed Bath to maintain above-average margins while minimizing volatility.
Published over a month ago
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Bed Bath Beyond conducts business under Consumer Cyclical sector and is part of Specialty Retail industry.
We provide trade advice to complement the prevailing expert consensus on Bed Bath Beyond. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Investing in Bed Bath, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Bed Bath along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Bed Bath's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Bed Bath in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Bed Bath. Your research has to be compared to or analyzed against Bed Bath's peers to derive any actionable benefits. When done correctly, Bed Bath's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Bed Bath Beyond.

How important is Bed Bath's Liquidity

Bed Bath financial leverage refers to using borrowed capital as a funding source to finance Bed Bath Beyond ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bed Bath financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Bed Bath's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Bed Bath, but it might be worth checking our own buy vs. sell analysis

Bed Bath Correlation with Peers

Investors in Bed Bath can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Bed Bath Beyond. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Bed Bath and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Bed Bath is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Bed Bath for more details

Payment of 5593 shares by Gupta Anuradha of Bed Bath subject to Rule 16b-3

Legal trades by Bed Bath insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Bed Bath insider trading alert for payment of common stock .01 par value per share by Gupta Anuradha, EVP CHIEF GROWTH OFFICER, on 11th of October 2022. This event was filed by Bed Bath Beyond Inc with SEC on 2022-10-11. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Bed Bath Further

Bed Bath is risky given 3 months investment horizon. Bed Bath Beyond secures Sharpe Ratio (or Efficiency) of 0.1, which signifies that the company had 0.1% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the risk of a stock is to use both market data as well as company specific technical data. We have analyzed twenty-seven different technical indicators, which can help you to evaluate if expected returns of 1.39% are justified by taking the suggested risk. Use Bed Bath risk adjusted performance of 0.0779, and Mean Deviation of 9.2 to evaluate company specific risk that cannot be diversified away.

Momentum Analysis of Bed Bath suggests possible reversal in October

Maximum drawdown is down to 80.37. It may suggest a possible volatility slide.
As of the 29th of September, Bed Bath shows the risk adjusted performance of 0.0779, and Mean Deviation of 9.2. Bed Bath Beyond technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We have analyzed nineteen technical drivers for Bed Bath Beyond, which can be compared to its rivals. Please confirm Bed Bath Beyond standard deviation, as well as the relationship between the maximum drawdown and expected short fall to decide if Bed Bath Beyond is priced correctly, providing market reflects its regular price of 6.46 per share. Given that Bed Bath has jensen alpha of 0.9846, we suggest you to validate Bed Bath Beyond's prevailing market performance to make sure the company can sustain itself at a future point.

Our Takeaway on Bed Bath Investment

While some other firms under the specialty retail industry are still a bit expensive, Bed Bath may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Bed Bath.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Bed Bath Beyond. Please refer to our Terms of Use for any information regarding our disclosure principles.

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