What happened

Bed Bath & Beyond (NASDAQ:BBBY) stock outperformed a strong market last month by gaining 47% compared to a 13% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.

The rally only erased a portion of shareholders' recent losses, as the stock is still down by over 65% so far in 2020.

A man delivering packages.

Image source: Getty Images.

So what

Most of the specialty retailer's stores were closed last month due to COVID-19 containment measures. But the company still shared some encouraging news with investors, including the fact that online sales are booming and that cash savings have grown to $1.4 billion in recent weeks. Those factors, plus the soaring broader market, helped the stock recover slightly in April.

Now what

Bed Bath & Beyond remains a risky stock. Its business was struggling before the pandemic hit and it's far from clear that the company will emerge from the crisis without sacrificing a significant part of its physical selling footprint.

The retailer's rising e-commerce demand confirms that it has many loyal customers and a strong merchandising strategy. Yet investors may want to follow the next few earnings reports for signs of a rebound before jumping into this consumer stock.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.