Stocks we love

Bed Bath & Beyond
Ticker: BBBY
P/E: 13
EPS growth: 12%

Home is where the heart is -- or at least should be.

Bed Bath & Beyond (BBBY, Fortune 500) may be one of the leading home goods retailers, but the company's stock hasn't gotten much love recently despite a big rally in housing-related stocks.

Shares of Bed Bath & Beyond declined almost 4% in 2012, while housing stocks advanced more than 60% on average. But that creates "a window of opportunity to buy a market leader" at a discount, according to analysts at Canaccord Genuity, whose target price on the stock stands at $74, up more than 25% from current levels.

One of the biggest criticisms of Bed Bath & Beyond has been its limited online presence, but the company's management has boosted its investment in e-commerce, and analysts say Bed Bath & Beyond's sizeable cash balance will continue to support that.

The company also owns Cost Plus World Market and buybuy Baby, which analysts say should help drive growth. The two chains only operate in 30 states so they both have plenty of room to expand.


Data as of February 5.
  @CNNMoneyInvest - Last updated March 11 2013 10:15 AM ET
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