Bed Bath & Beyond (NASDAQ:BBBY) � This retailer�s sales and earnings have risen steadily during the recession with earnings at $1.64 in 2009, $2.30 in 2010, and $3.07 in 2011. S&P estimates earnings of $3.93 in 2012 and $4.58 in 2013.
The company also operates stores under the names of Christmas Tree Shops, Harmon and buybuy BABY. And it plans to open 10 new Christmas Tree Shops and 15-20 new buybuy BABY stores this year.
At just 13 times 2013 earnings, the stock is expected to expand its P/E to 16 times with a target price of $72.
Technically BBBY is in a powerful bull market channel supported regularly by its 200-day moving average and bullish support line (red dash and solid red lines). The $72 target seems modest and the stock could even go to the high $70s by summer.
No comments:
Post a Comment