These Are the Catalysts and Risks Bed Bath & Beyond Stock (BBBY) Investors Need to Watch

It seems like Beyond's leadership sees the brand as its strongest intellectual property and is using it to help its growth plans, according to Fast Company. Indeed, the firm reopened a Bed Bath & Beyond store in Nashville, which has already drawn strong foot traffic and media attention. Nevertheless, understanding what could drive the stock higher or what might weigh it down is key for anyone watching this company. Catalysts that May Push the Stock Higher One of the most important catalysts for BBBY is brand recognition. In fact, the name still resonates with millions of U.S. consumers, as demonstrated by the strong early performance at the Nashville location. As a result, CEO Marcus Lemonis plans to open as many as 300 stores nationwide, which, if successful, could restore Bed Bath & Beyond's physical footprint and diversify revenue streams. The company is also positioning itself as more than just a retailer, with Lemonis highlighting the potential of monetizing blockchain-related assets, a strategy that could add a modern angle to its turnaround story. The stock's history as a "meme stock" is also worth noting. Because of past activity from retail investors, BBBY shares can sometimes jump sharply. While unpredictable, this kind of investor sentiment has the potential to drive short-term gains. Risks to Watch Out For Despite the excitement, significant risks remain. The company is still recovering from bankruptcy and faces the same challenges that dragged it down before: stiff competition from and shifting consumer habits that favor online shopping. In addition, expanding to 300 stores is ambitious, but it comes with heavy costs, execution risks, and exposure to weak foot traffic in certain regions. The overall economy adds another layer of risk. If consumers cut back on spending, the company's sales will take a hit. And while meme-stock rallies are capable of boosting the share price in the short run, they also lead to volatility and often end in steep selloffs. As a result, without meaningful improvements in the business itself, these temporary spikes may not be sustainable. Is BBBY Stock a Good Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on BBBY stock based on two Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average BBBY price target of $11.00 per share implies 15.9% upside potential.