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