Bed Bath & Beyond Inc. BBBY came out with second-quarter fiscal 2020 results wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. Results reflect gains from robust digital growth, courtesy of its BOPIS and contactless curbside-pickup facilities. Keeping in these lines, the latest introduction of same-day-delivery service is likely to aid the top line further. Apart from these, stringent cost-cutting actions and strong financial position contributed to quarterly growth.

Moving on, all its stores resumed operations by early July. However, it refrained from providing any fiscal 2020 outlook, given the continued uncertainty of the pandemic.

Q2 in Detail

Bed Bath & Beyond reported adjusted earnings of 50 cents per share for fiscal second quarter, up 47% from 34 cents reported in the year-ago quarter. Moreover, the figure came ahead of the Zacks Consensus Estimate of a loss of 17 cents. This uptick was mainly attributed to improved margins and lower expenses.

Net sales came in at $2,688 million, down 1.1% year over year, owing to the sale of One Kings Lane business. However, it surpassed the Zacks Consensus Estimate of $2,613. Moreover, digital sales rose roughly 88%, accounting for approximately 32% of total sales. Several omni-channel services, such as Buy-Online-Pick-Up-In-Store and Curbside Pickup contributed to digital sales growth. Evidently, BOPIS now accounts for more than 15% of total digital sales. Speaking of its ship-from-store facility, the company’s stores have fulfilled roughly 36% of total digital orders during the quarter under review. Driven by its strong omni-channel capabilities, Bed Bath & Beyond witnessed nearly 2 million new online customers in the quarter. On the flip side, in-store sales fell 18% in the reported quarter.

During the quarter, comparable sales (comps) grew nearly 6% year over year, marking the first sales growth since fourth-quarter fiscal 2016. This can be



chart: top stock trades for NIO


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top stock trades for NIO

A poor jobs report and news that President Donald Trump has tested positive for Covid-19 weighed on the stock market on Friday. With that in mind, let’s get to some top stock trades in the meantime. 

Top Stock Trades for Monday No. 1: Nio (NIO)




chart: top stock trades for NIO


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top stock trades for NIO

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Nio (NYSE:NIO) reported solid third-quarter delivery results on Friday, but you wouldn’t know it by the stock’s reaction. Same with Tesla (NASDAQ:TSLA).

However, unlike Tesla, Nio stock isn’t wavering as much. In fact, the stock is holding up near its prior breakout level.

In late August and early September, Nio stock was rejected by the $21 level. It didn’t help that the company raised additional funds and the stock market took a solid dip (as did Tesla).

However, Nio never broke stride, as uptrend support continued to hold (blue line). This week, shares were able to breakout over $21 and hit the 161.8% extension (for the entire range).

Let’s see if the stock can continue to hold up over the 10-day moving average. If it can, it will keep bulls looking for a move over $22.59, the current all-time high. Above that could trigger a rally to the two-times range extension all the way up near $26.40.

On the downside, a break of the 10-day moving average puts uptrend support and the 50-day moving average in play.

Top Stock Trades for Monday No. 2: Bed Bath & Beyond (BBBY)




chart: top stock trades for BBBY


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top stock trades for BBBY

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Source: Chart courtesy of StockCharts.com

Earlier this week, Bed Bath & Beyond (NASDAQ:BBBY) reported a much better-than-expected earnings result. Now, shares are ramping higher on