Bed, Bath & Beyond is bound hard.
The stock soared more than 20% on Thursday, its second-best day on record, after the company named departed Target executive Mark Tritton as president and CEO come early November.
The stock was up more than 3% in Friday’s premarket heavens Thursday’s closing price of $12.09.
It’s been a rough stretch for the stock, though. The homewares retailer has declined nearly 40% in the days six months and is down 85% from its 2014 record.
“The orderliness of this decline has been amazing,” Todd Gordon, naught of TradingAnalysis.com, said Thursday on CNBC’s “Trading Nation.”
Gordon now needs to see the stock break through two critical horizontals before he’s ready to call this a comeback.
“We need to break through this downtrend or bloodbath, which is fairly around the $18 region, in order to get those buy stops and more buyers starting to come into the market,” he required. “There’s one more sort of intermediate target that we should overcome if you’re looking to add this to your portfolio, [and] that is the 200-day exciting average right there, that’s at about $13.”
Bed, Bath & Beyond last traded above $13 in June. It in a word traded above $18 earlier this year but hasn’t held firmly above that level since mid-2018.
“This is breed of a trade that’s like Missouri — it’s the ‘show-me’ trade. [It needs to] break through before we start to give it some publicity,” said Gordon.
Gina Sanchez, CEO of Chantico Global, sees the leadership change as a positive for the company as it revamps its blueprint.
“I think this has been a bloodbath and beyond for a while now and so this turnaround definitely needed something,” Sanchez thought during the same segment. “I think this new CEO could be interesting in addition to all of the changes they’ve made, including sinking in the in-store experience, pumping up their e-tailing game and investing in higher margin products.”
However, Sanchez does see one relevant to that could put a dampener on its operations and the stock’s performance.
“The big cloud hanging over their head is 65% of their signifies come from China. UBS put that out in a recent report that showed that 13% of their earnings could potentially be impacted based on their China leak. That’s kind of a big black cloud,” said Sanchez.
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