Bed Bath & Beyond Inc. (BBBY) is a major retailer of products for the home, including bed sheets, bath soaps and beyond to kitchenware. The stock peaked in January 2014 with an all-time intraday high of $80.82, then a secondary high of $79.64 in January 2015. Since then, it has been a stock to avoid, as shares traded as low as $19.07 on Nov. 7.

The stock was trading at $21.14 Tuesday afternoon, down 3.9% year to date and in correction territory at 12.2% below its 2018 high of $24.08 set on Jan. 24. The stock is up 6.6% from its 2018 low of $19.84.

Analysts expect Bed Bath & Beyond to deliver earnings per share of $1.37 to $1.41 when the company reports results after the closing bell on April 11. The key metrics to focus on are same-store sales, margins and guidance for 2018. Does the retailer have an expanding online shopping experience? The stock appears cheap enough to take a risk given the P/E ratio of 5.98 and dividend yield of 2.88%. (See also: Bed Bath & Beyond Stock Is Cheap for Holiday Shopping.)

The daily chart for Bed Bath & Beyond

Daily technical chart showing the performance of Bed Bath & Beyond Inc. (BBBY) stockCourtesy of MetaStock Xenith

Shares of Bed Bath & Beyond have been below a "death cross" since the week of June 16, 2015, when the stock closed at $69.68. A "death cross" occurs when the 50-day simple moving average falls below the 200-day simple moving average and indicates that lower prices lie ahead. Note that the stock is below its 50-day and 200-day simple moving averages of $21.76 and $24.04, respectively, with this week's pivot at $21.73.

[To learn more about recognizing patterns on stock charts, check out Chapter 5 of the Technical Analysis course on the Investopedia Academy]

The weekly chart for Bed Bath & Beyond

Weekly technical chart showing the performance of Bed Bath & Beyond Inc. (BBBY) stockCourtesy of MetaStock Xenith

The weekly chart for Bed Bath & Beyond is negative, with the stock below its five-week modified moving average of $21.57. The stock is well below its 200-week simple moving average at $48.30, which is the stock's "reversion to the mean," last crossed during the week of July 24, 2015, when the average was $66.93. The 12 x 3 x 3 weekly slow stochastic reading is projected to end this week at 36.51, down from 40.46 on April 6.

Given these charts and analysis, investors should consider buying the stock in anticipation that shares will rise above my weekly pivot of $21.73. The nearest level at which to reduce holdings on strength is the 200-day simple moving average at $24.04. (For more, see: The Industry Handbook: The Retailing Industry.)

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