Don’t look now, but retail stock sare getting pricey again.
The big winner today is Bed, Bay & Beyond (BBBY) up 20%. At $30 it’s now trading at about 20x forward earnings. Best Buy (BBY) is another one — not quite as expensive — at 15x forward earnings, having more than doubled off its lows.
Even lowly Starbucks (SBUX), which has been getting killed, has found a bid lately, jumping about 40% off its lows to around 17x forward earnings.
Not that these are insanely expensive, but they mean one of two things.
Either investors are way too optimistic about the chances of a second-half consumer recovery, or the stock market really is pricing in — as the bulls love say — an economic rebound about six months away.