Bed Bath & Beyond is trading at 6694. The share price is down 16% since it reported third-quarter earnings in January when it revealed a 1.9% increase in profits along with a lowered outlook which spooked traders.
The retailer can boast an increase in profits for the previous seven quarters which has helped the share price exceed 8000 in early 2014, but the stock fell below 6300 after the firm lowered its quarterly earnings per share forecast from a range of $1.70-1.77 to $1.60-1.67.
This week the company has lowered its forecast yet again to $1.57-1.61. This could be the company easing the flow of negative news to avoid another share price, but adverse weather forced a number of stores to close during the past few months.
The stock has managed to pull back some of it losses but it has struggled with breaking through and stay above the psychological level of 7000. If the fourth EPS comes in below the range of $1.57-1.61, we could retest the recent low of 6700. Since the forecast has been lowered twice it will be difficult for the stock to reach the 7200 mark, which has proved to be an important metric over the past 18 months.