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Stock of the Month: Bed Bath & Beyond (BBBY)

Written by Donnie Nguyen

January 19, 2021

Bed Bath & Beyond (NASDAQ: BBBY) is the January 2021 stock of the month. These are stocks that I think have a good chance of beating the S&P 500 over the next 5 to 10 years.

Bed Bath & Beyond sells an assortment of domestic merchandise and home furnishings, which operates under the names, such as Bed Bath & Beyond, Harmon, buybuy BABY and Cost Plus World Market.

With a coronavirus vaccine currently in distribution, the theme lately has been about the “reopening stocks”. As I scrutinized stock of the month candidates that will benefit the most from the vaccine, it was difficult to find any whose stock prices were still reasonably priced.

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Bed Bath & Beyond stock fits the bill. As of Friday’s close (1/15/2021), BBBY stock closed at $25.60, down 68.3% from it’s all-time high of $80.82.

In this video, I first discuss why I’m bullish on Bed Bath & Beyond. Then I share my game plan for investing in Bed Bath & Beyond stock. 

This is also going to be my final stock of the month pick as I pursue creating other content. But you can still see all of my past picks and results here.

Find out why I like BBBY stock now.

NOTE: This article was originally published on January 18, 2021. The article was updated on January 19, 2021, to add the video.

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KEY STATS (AS OF 1/15/2020)

Share Price: $25.60

Shares Outstanding: 121.2M

Market Cap: $3.1B

Total Current Assets: $3.96B

Total Current Liabilities: $2.71B

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Current Ratio: 1.46

Cash and Cash Equivalents: $1.46B

Long Term Debt: $1.19B

Revenues (latest quarter): $2.62B

Net Loss (latest quarter) $75.44M

SHOULD I BUY THIS STOCK?

Bed Bath & Beyond  stock could be a good addition to a portfolio that wants exposure to:

  • Specialty Retail
  • Small-Cap Blend

Be sure to do your own research and determine if BBBY stock is a good stock for your portfolio.

HOW MUCH OF THIS STOCK SHOULD I BUY?

Here are some portfolio guidelines we Wolves try to live by:

  • Thou shalt not hold more than 35% in any one particular sector
  • Thou shalt not invest more than 10% of principal into one individual stock
  • Thou shalt make small purchases. The general rule of thumb is to spend no more than 2% of your portfolio on a single purchase and build up your position over time.

These portfolio guidelines have helped me tremendously through my 20+ years of investing.

Disclosure

I/we own shares of BBBY

Except for Wolves of Investing, I/we are not receiving any compensation from and do not have any business dealings with any companies whose stocks are discussed in this article.

Want to learn the principles that help me to consistently beat the market? Check out my free eBook, 5 Things I Wish I Knew Before Buying My First Stock.

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Donnie Nguyen

Donnie Nguyen

Donnie Nguyen is the founder and CEO of Wolves of Investing. He started investing in the stock market in the early 2000s. He follows the teachings of Peter Lynch, Warren Buffett, and other investing legends. When he's not investing or blogging, he loves spending time with his family traveling and experiencing the world.

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