NEW YORK (TheStreet) -- Shares of Bed Bath & Beyond (BBBY) were higher in mid-afternoon trading on Wednesday as the Union, NJ-based home retail company is appointing an external auditor to review products from Welspun India.
The auditor will confirm whether the Mumbai-based textile manufacturer's bedding products are made of Egyptian cotton. Welspun has come under fire for selling cheaper bedsheets as premium Egyptian cotton.
The decision follows similar moves by Target (TGT) and Walmart (WMT), who also sell the company's sheets.
Target is pulling the items from its stores, while Walmart is investigating Welspun's cotton certification records.
J.C. Penney (JCP)said yesterday it is also conducting an investigation into Welspun's sheets. The company added that it's too early to "determine what actions may be necessary," Fortune reports.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate BED BATH & BEYOND INC as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: