NEW YORK (TheStreet) -- Bed Bath and Beyond (BBBY) is a corporation consisting of more than 1,500 retail stores that sell home furnishings. BBBY will announce second-quarter earnings (fiscal year ending in February 2016) on Wednesday.
Those earnings are expected to be around the 95 cents a share. For BBBY's fiscal year, the analysts project $5.25 per share, which would equate to a relatively low price-to-earnings ratio of 14 (basis: the general market P/E of 16+).
BBBY has a decent if not strong balance sheet, especially for a company in the at-times chaotic sector of retail sales. Thus, management has proven it is up to the task of handling the changing mood of their customer base.
Last month, it was announced that Leonard Green & Partners had purchased almost one million shares of BBBY.
This was not the kind of news that BBBY short-sellers wanted to hear -- 9% of BBBY's floating stock total is held as short sales. Once again, we are reminded that he or she who shorts with no long call hedges in place as protection are prone to have bad trading days. So be it. As for BBBY longs, perhaps things are about to improve.
Or, maybe not improve. BBBY has a one-year stochastic pattern that I read as being iffy to toppy. That pattern would move into being bearish as I read the BBBY charts should the Relative Strength Index continue to move downward in number.