Shares of Bed Bath & Beyond (NASDAQ: BBBY) jumped more than 10% on Thursday following a string of strong earnings results from its fellow retailers. As of 1:15 p.m. EDT, shares were up 9%.
Retailers received some good news earlier in August when President Trump delayed some tariffs on Chinese imports to avoid a potential negative impact on the all-important holiday shopping period. "We're doing this for the Christmas season," Trump said at the time. "Just in case some of the tariffs would have an impact on U.S. customers."
The good times continued in the days that followed when retailers such as Walmart, Target, and Lowe's Companies reported better-than-expected earnings results. And today, BJ's Wholesale Club is seeing its shares surge after it, too, delivered earnings that exceeded Wall Street's estimates.
Many retailers have reported robust sales in recent weeks. Image source: Getty Images.
Investors appear to be bidding up Bed Bath & Beyond's stock on the belief that the success of its peers bodes well for the struggling retailer.
While multiple major retailers are being rewarded for their strong operational performance, it doesn't necessarily mean that Bed Bath & Beyond will enjoy similar success. The home goods retailer has struggled with tepid sales growth and sharply declining margins in recent years. In turn, its stock has lost a devastating 85% of its value over the past half decade.
With Bed Bath & Beyond finding it difficult to compete with its more online-savvy rivals, long-term investors may be best served by steering clear of this stock despite its recent gains.
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This article was originally published on Fool.com