Insights

All-time high! Here’s why the Baby Bunting (ASX:BBN) share price is soaring today

Here’s why the Baby Bunting Ltd (ASX: BBN) share price is at an all-time high today. But are BBN shares a buy for 2020 and beyond?
The post All-time high! Here’s why the Baby Bunting (ASX:BBN) share price is soaring today appeared first on Motley Fool Australia. –

hands throwing smiling baby up in the air representing rising baby bunting share price

The Baby Bunting Group Ltd (ASX: BBN) share price is on fire today. Baby Bunting shares started out at $4.49 this morning, but have soared 4.45% at the time of writing to $4.69 a share. Earlier in the trading day, Baby Bunting shares hit their new all-time high of $4.77, which means (at that price) Baby Bunting has given investors a return of more than 300% since 23 March, and more than 42% for 2020 so far.

What is Baby Bunting?

Baby Bunting is a retailer focused on ‘everything baby’. It has more than 50 stores around the country (as well as a strong online presence) and sells products ranging from prams and toys to manchester and car seats. The company has been around since 1979, but only recently joined the ASX boards (almost exactly 5 years ago). Since listing on 16 October 2015, the Baby Bunting share price has gone from $1.86 to today’s $4.66, meaning inevstors have enjoyed share price growth of around 150% over the past 5 years.

Why is the Baby Bunting share price at an all-time high today?

Even though the Baby Bunting share price is at a new all-time high, there is no obvious reason why today, with no major announcements coming out of the company this month so far.

As such, I think we can put today’s moves down to the general positive sentiment that has been swirling around this company since it reported its full-year earnings last month. On 14 August, Baby Bunting told the market that its revenue for the 2020 financial year was up 11.8% (including a near 40% rise in online sales), with profits rising by 34.1%.

Since 13 August, Baby Bunting shares are up clsoe to 25%, so I think the moves we are seeing today are just a continuation of this trend.

Is Baby Bunting a buy today?

Baby Bunting is without a doubt a top quality company with promising growth prospects and an impressive track record. It has managed to grow into its own niche in a very effective manner. Its online platform is also impressive, and it was good to see such a strong takeup of online sales during the worst of the national coronavirus lockdowns last financial year.

That being said, I’m not too wild about the Baby Bunting share price today. The company does offer a decent trailing dividend yield right now of 2.24%. However, the company is also being priced with a 63.7 price-to-earnings (P/E) ratio, which is not at a comfortable level in my opinion.

This is a growing company to be sure, but 63.7 is a very high P/E ratio that I’m not sure the company can live up to for the long-term. As such, this is a share that’s staying on my watchlist for now.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post All-time high! Here’s why the Baby Bunting (ASX:BBN) share price is soaring today appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!