Bed Bath & Beyond (BBBY) Q4 Earnings: Stock to Disappoint?
Bed Bath & Beyond Inc. (BBBY – Free Report) is scheduled to release fourth-quarter fiscal 2016 results on Apr 5. The big question facing investors is, whether this leading home furnishings retailer will be able to deliver a positive earnings surprise in the quarter to be reported.
Bed Bath & Beyond has been delivering negative earnings surprises for three straight quarters now.
Why Bed Bath & Beyond Has Big Upside Potential
Bed Bath & Beyond (NasdaqGS:BBBY) is expected to report earnings on Wednesday after the market closes. Shares are trading near their three year low and for good reason. The retailer has reported disappointing earnings ten out of the last twelve quarters.
In the face of a coupon focused consumer, the company has struggled to price its merchandise at a premium (something its been able to do historically). As a result, Bed Bath & Beyond’s EBITDA margins have steadily fallen over the last eleven quarters and the stock has followed suit.
Bed Bath & Beyond Is Latest Retailer to Squash Trump Products
Bed Bath & Beyond (BBBY) is the latest retailer to discontinue products made by President Donald Trump and his family, amid criticism surrounding certain of his policies.
Shannon Coulter, the leader of the anti-Trump boycott movement, #GrabYourWallet, posted on Twitter (TWTR) , an email she received from the home goods retailer saying: “At this time, we are no longer carrying Trump merchandise.”
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On the Tape Today | 4-5-17
MAR | Marriot Intl. showing some profit taking after a solid run of order flow and momentum. Not quite an inside day but pretty close. Looking to be a buyer on a push lower off the open. I want a move lower so I have more profit potential to the previous high. Letting it go on a higher open. Game Planning a $91.25 limit order to buy. Stop loss on a close below $90. Profit target @ $ $95.
TWLO Twilio produced a "fuel" candlestick yesterday. Minor support @ $26 but I am game planning a short sale for a 2 day trade to the $24 support. $27 sell-stop and a $27.80 stop loss. Profit target just above the $24 support. If the general stock market should see selling, I will consider holding to just above $20.
Tape Reading the SPY ETF
$SPY produced an inside day on a light 55 million shares traded.
Sometimes when something doesn’t happen that can be a signal too. Monday’s price action showed a solid inside breakdown after a swing high. Price should have closed lower and continued for a day or two, but it didn’t.
Yesterday $SPY price action remained inside Monday. If you’re new trading in simple terms that means nothing new happened. If price action cannot exit the previous day, new order flow did not enter the market. It essentially washes the day. *The only time this is not correct occurs when volume is heavy. That means money is changing hands between smart money and the public.
This is known as an accumulation or distribution day, you can read more about spotting order flow here.
Combining the previous two days of price action and volume implies bearish order flow exhausted itself. The reason why is simple. If short-sellers or profit taking was heavy, a light volume day is perfect for them to take control, and they did not.
Does this mean to be a buyer? Not necessarily, but if you have a “buy or sell” scale in your head, it no longer tilts to the short side. (Which prior to this analysis was slightly bearish at best)
What is the point of this lesson?
To succeed and reach a consistent six-figures, you must learn to put these pieces together. You must learn to develop your own bias. You must learn to have conviction. This type of analysis gives you confidence because it’s YOUR bias.
Day-by-day, bar-by-bar give price action meaning, then come to a conclusion.
Learn to read the tape. Chart reading is the effect. Learn to see the cause and be ahead of price.
Could the stock market trade lower today? Yes of course but that doesn’t matter. I am a trader not a surgeon. I’m not looking to be right, I’m looking to make money. If my bias doesn’t not unfold, so what.
At least I had a bias.
I only need 2 days a week for my picture of the tape to unfold perfectly, and I jump all over my trade ideas.
Stop focusing on when it doesn’t happen, and make money on days it does.
As my dad used to say “did you make some scratch today?”
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 4-5-17 | Wednesday Edition
Bullish Momentum: RH, EQT, INCY, BIVV, TSLA
Bearish Momentum: twlo, lb, kss, aal, srpt, cara, thc, rost, htz, tjx
Long-Term Order Flow
Bullish Order Flow: RH, BIVV, TSLA, AMZN, SWKS, WDC, ETN, CRM, AAPL, CBS, PM, ADBE, WYNN, TMUS, CC, DIS, MAR, AMT, FB, TIF
Bearish Order Flow: twlo, lb, rost, lulu, kmx, tgt, panw, mnk, prgo, car, fslr
2X Normal Volume: LB, HTZ, LULU, KMX, AKAM
Inside Days: msft, t, x, fb, efc, c, nmy, ms, kmi, amat, qcom, sbux, schw, cop, symc, mo, mgm, dow, met, v, mos, aig, mos, tsm, dis, ual, axp, ma, cof, hon
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