Why Did Bed Bath & Beyond’s Stock Skyrocket 42% Since Last Week?

Bed Bath & Beyond (NASDAQ: BBBY), has increased by almost 42% over the last five trading days (one week) and currently stands at around $22. In comparison, the broader S&P500 index increased only marginally over the same period. The home products retailer just announced a shift in its business model that includes a key tie-up with Kroger, a national supermarket chain. Under the collaboration, BBBY will offer an extensive selection of its most popular home and baby products to Kroger customers via Kroger.com, and eventually at a number of its grocery stores. In addition, the retailer will also begin a small-scale store-within-a-store pilot project sometime next year. All these moves appear to be in line with Bed Bath & Beyond’s strategy to reinvigorate the company’s struggling business. While investors’ excitement contributed to the retailer’s stock price surge post the tie-up news, short-sellers also created a short squeeze soon after that which propelled BBBY stock price even higher.

Now, is BBBY stock poised to grow further? Based on our machine learning analysis of trends in the stock price over the last ten years, there is a very low chance of a rise in BBBY stock over the next month (twenty-one trading days). See our analysis on BBBY Stock Chance Of Rise for more details. And if you are considering SPG’s stock as an investment option over a longer time frame, you can also explore BBBY’s Revenues against its history.

[1] Returns of 42% or higher during five-day period in 10 times out of 2516; Stock rose in the next five days in 1 of these 10 instances

[2] Returns of 50% or higher during ten-day period in 14 times out of 2516; Stock rose in the next ten days in 4 of these 14 instances

[3] Returns of 46% or higher during twenty-one-day period in 48 times out of 2516; Stock rose in the next twenty-one days in 17 of these 48 instances

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