Albertsons stock trades at 6.9 times expected 2023 EPS, 7.1 times estimated 2024 earnings of $2.96 and 7.2 times estimated 2025 earnings of $2.89 per share. The stock’s 52-week range is $20.05 to $37.99. Albertson’s pays an annual dividend of $0.48 (yield of 2.31%). Total shareholder return for the past year was negative 9.3%.
Bed Bath & Beyond
Since spiking to a 52-week high in March, shares of Bed Bath & Beyond Inc. (NASDAQ: BBBY) have plunged by more than 70%. Over the past 12 months, the stock is down by about 90%, and the company warned on Thursday that there is “substantial doubt” that it can continue as a going concern. Some people expect a bankruptcy filing as early as this weekend.
The writing has been on the wall for a while now. None of the 15 analysts covering the stock has a Buy or better rating, while 12 have a Sell or Strong Sell rating. The stock trades about 65 cents below its median price target of $2.00 and light years from its high target of $7.50.
As for its third-quarter performance, the consensus revenue estimate is $1.35 billion, down 5.9% sequentially and 39.3% lower year over year. Bed Bath & Beyond is expected to post a per-share loss of $2.65, better than the prior quarter’s loss of $3.22 but much worse than the year-ago quarterly loss of $0.25 per share.
Before GameStop board chair and activist investor Ryan Cohen sold his nearly 12% stake in mid-August, shares of Bed Bath & Beyond had soared by a factor of nearly six since the beginning of the month. Retail investors (read: Apes) had piled into the stock and, just as quickly, exited on news that Cohen had sold. Before his sale, Cohen did get the company’s board to replace the CEO and add three new members. The new management quickly announced a turnaround plan that included closing 150 stores and firing 20% of its staff. The stock price has continued to sink, however. Investors are not convinced that those steps will shake things up much.
Analysts are skeptical too. Of 17 brokerages covering the firm, 12 have a Sell or Strong Sell rating, while five rate the stock at Hold. At a price of around $6.40, the shares trade at nearly double their median price target. At the high price target of $9.00, the upside potential is 40.6%. For the full year ending in February, the company is expected to post a loss of $9.29 on sales of $5.77 billion, down more than $2 billion from last year’s total.
Shares plunged to a new low of $1.27 Friday morning, and there is nothing to indicate that a white knight will arrive in time to save the day.
Originally published at 24/7 Wall St.
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