Tractor Supply Company (TSCO), Bed Bath & Beyond Inc. (BBBY): Have These Stocks Lost Their Luster?

This stock has received some bullish comments in context of the US housing recovery. Recently, one of its peers, Restoration Hardware (NYSE:RH) has been surging given the positive reports on housing starts. The home furnishing company is up by nearly 15% since the announcement made at the start of the year that housing starts for 2012 were the fastest read since 2008. This stock has also been the center of interest given that the furniture industry outperformed the entire retail sub-segments.

I still remember that Jim Cramer said in one of his Lightning Rounds by the end of Jan. that, “People don’t like this stock. I do. I think it is a great play on housing.”

At that time the stock was trading at $36. Just a week after that program, the stock rallied to $40 (which means almost 13% gain in a week). However, the stock has lost those gains recently Leon’s Furniture reports suggest that furniture demand might be pulling back after due to a potential consumer spending pullback. However, I believe this might not be true given the recent rally in the consumer confidence index gauged by University of Michigan Survey of Consumer Confidence Sentiment.

Foolish Bottom-Line

In case of both Tractor Supply and Bed Bath & Beyond, investors seem to face considerable confusion given inconsistent performances and lack of solid future strategy. These stocks might become attractive once the clouds of uncertainty disperse.

The article Have These Stocks Lost Their Luster? originally appeared on Fool.com.

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