Bed Bath & Beyond

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Housewares retailer Bed Bath & Beyond ( BBBY) arguably holds the most-attractive positioning in the industry, offering a one-stop shop for everything from fine china to kegerators at its namesake stores -- and the firm manages to do that at prices that its competitors have difficulty matching. An aggressive coupon strategy means that value-conscious shoppers frequent Bed Bath & Beyond's locations in search of big-ticket items, typically adding discretionary purchases to their carts in the process.

In an industry that's been under pressure alongside the housing market, Bed Bath & Beyond has actually generated positive growth and maintained near-double-digit margins. Those are very impressive operating attributes that can only improve as consumers loosen their purse strings alongside some semblance of an economic recovery. Likewise, the firm's smaller retail brands have been solid performers and currently have room for expansion.

One of the most attractive attributes of Bed Bath & Beyond's growth is the fact that the company has built out its store footprint through cash on hand, not debt. As a result, this blemish-free balance sheet puts the company in a much better position than its peers if economic headwinds perk up again. With analyst sentiment on the upswing, we're betting on shares.

Bed Bath & Beyond shows up on a recent list of Cramer's Buying Opportunities.

To see this week's sentiment plays in action, check out the Rocket Stocks portfolio at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


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At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on

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