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Bed Bath & Beyond Inc (BBBY) Is the Latest E-Commerce Victim

By U.S. News & World Report

Bed Bath & Beyond Inc. (ticker: BBBY) stock plummeted more than 10 percent on Friday to new seven-year lows after the company’s first-quarter earnings report revealed the retailer continues struggling to adapt to the digital era.

Bed Bath & Beyond reported first-quarter earnings per share of 53 cents on revenue of $2.7 billion. Both numbers missed consensus Wall Street expectations of 66 cents and $2.79 billion, respectively. Comparable-store sales declined by 2 percent in the first quarter, well below the 0.3 percent increase analysts were expecting.

In a statement, the company plays down the weak quarter, saying that the first quarter of the year is “typically the least impactful quarter in terms of annual sales and earnings.” However, Bed Bath & Beyond did little to reassure investors concerned about the outlook for the remainder of the year. The company said “it remains to be seen” whether its first-quarter challenges were unique to quarter. Management also opted not to update its full-year guidance.

[See: 10 Skills the Best Investors Have.]

The initial market reaction suggests BBBY’s previous full-year guidance from April may be at risk.

“While management commented that sales have improved in June, we believe the company will likely lower its 2017 guidance range when it next reports in September,” BTIG analyst Alan Rifkin says. “Store traffic has softened as [management] acknowledged the reality of today’s retail landscape where the customer has more choices than ever.”

Despite its negative business trends, Bed Bath & Beyond now trades at a forward price-earnings ratio of 6.5, suggesting the stock could be a compelling long-term value play if the company can get back on the right track. Unfortunately, after a disappointing first quarter, investors shouldn’t expect business to turn on a dime.

“We are hard-pressed to envision a quick turn in BBBY fundamentals,” Oppenheimer analyst Brian Nagel says. “We do, however, look very favorably on a depressed valuation and substantial cash flow and believe that an impeccable balance sheet affords the company time and flexibility.”

[See: 9 Ways to Buy Stocks That Everyone Needs.]

Oppenheimer maintains a “perform” rating on Bed Bath & Beyond stock, while BTIG continues a “neutral” rating.

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Bed Bath & Beyond Inc (BBBY) Is the Latest E-Commerce Victim originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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