As meme stocks became a focal point in the modern investing community, Bed Bath & Beyond (NASDAQ:BBBY) got its 15 minutes of fame. While not as dramatic as GME or AMC stocks, BBBY grew 194 percent in late January. The peak didn't last, but the company is now back on the map with a marked peak.
What's going on with Bed Bath & Beyond, and what can investors expect from this meme stock list favorite?
Unlike other meme stocks, analysts report strong fundamentals for Bed Bath & Beyond
One of Bed Bath & Beyond's most prominent points of strengths is its dedicated investment in e-commerce. CEO Mark Tritton has a history of spearheading corporate shifts—he was head of merchandise at Target when they moved to create an online-friendly atmosphere.
The company's current state of earnings holds potential. While some speculated that the company might be going bankrupt after closing 200 retail stores over the course of two years, this move doesn't necessarily scream failure. Instead, BBBY is taking stock of its retail footprint and adjusting the size for maximum earnings. That's good for the store and investors.
Overall, Tritton—who has been at his post since 2019—is doing what he came to do.
What caused the latest upswing for BBBY stock?
From May 25–June 2, BBBY stock grew 86.14 percent. What trailed the one-week period was a 25.78 percent correction. YTD, BBBY is up 81.58 percent, although it's down 38.1 percent from its peak on Jan. 27.
Part of the most recent rally is sentiment derived from social media, which is precisely what makes a meme stock what it is. Meme stocks aren't looking at the aforementioned fundamentals, but rather the potential for the stock to soar to unprecedented heights based on social consensus.
Along with sentiment, BBBY stock is being propped up by product news. The company announced that it's launching a trio of new store brands that can only be purchased at Bed Bath & Beyond. The company hopes that this will contribute to exclusivity for the brand. Tritton's influence for this move comes directly from his experience with Target, which has a whole line of brands you can only find through them.
Bed Bath & Beyond (BBBY) stock forecast
According to TipRanks, eight Wall Street analysts recommend holding BBBY stock. This doesn't mean buying or selling, but remaining in the position if you're already in. The correction on June 3 could provide an entrance for those with a fear of missing out.
The 12-month forecast hits as high as $38.00 per share, which is generously higher than the $33.13 shares are trading at now. Opposed analysts are calling for a median of $26.22.
Beyond Reddit, Bed Bath & Beyond stock has potential
It's worth noting that this emphatic action still hasn't beaten the BBBY action from 2013 and 2015. The stock has a long way to go, but the earnings potential is real. Investors looking for long-term rewards might be able to discount the current volatility.