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Bath & Body Works, Inc. (BBWI) Stock Analysis

Recovery setup

SellModerate Confidence

Consumer Cyclical · Specialty Retail

Sell if holding. Momentum 3.3/10 is below the 5.0 floor at $19.17 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (2); Negative news sentiment (-1.00).

Bath and Body Works is a personal care and home fragrance retailer with 1,927 company-operated North American stores, 573 international partner-operated stores in 45+ countries, and 40 million active loyalty members. Revenue is generated through in-store and e-commerce sales;... Read more

$19.17+25.7% A.UpsideScore 5.2/10#7 of 18 Specialty Retail
Stop $17.77Target $24.03(analyst − 13%)A.R:R 2.4:1
Analyst target$27.62+44.1%13 analysts
$24.03our TP
$19.17price
$27.62mean
$56

Sell if holding. Momentum 3.3/10 is below the 5.0 floor at $19.17 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (2); Negative news sentiment (-1.00). Chart setup: Death cross but MACD improving, RSI 57. Score 5.2/10, moderate confidence.

Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 28d clear, semi cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.

Thesis

Rewards
Attractive valuation
Margin of safety: 61%
Analyst upside: 26%
Risks
Consecutive earnings misses (2)
Negative news sentiment (-1.00)
Weak growth

Key Metrics

P/E (TTM)5.9
P/E (Fwd)6.4
Mkt Cap$3.7B
EV/EBITDA5.5
Profit Mgn8.9%
ROE
Rev Growth-2.3%
Beta1.46
Dividend4.36%
Rating analysts22

Quality Signals

Piotroski F5/9

Options Flow

P/C0.52bullish
IV76%elevated
Max Pain$9-53.1% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMGeographiccentral Ohio (manufacturing/distribution)
    10-K Item 1A: 'the geographic concentration of third-party manufacturing facilities and our distribution facilities in central Ohio'
  • MEDIUMSupplierlimited number of suppliers
    10-K Item 1A: 'our reliance on a limited number of suppliers to support a substantial portion of our inventory purchasing needs'

Material Events(8-K, last 90d)

  • 2026-02-25Item 5.02MEDIUM
    Michael Wu ceased as Chief Legal Officer and Corporate Secretary of Bath and Body Works effective February 24, 2026. Company initiated search for next CLO; no successor named at filing. Wu to assist with transition through approximately March 27, 2026 separation date.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Revenue shrinking — -2.3% YoY. Growth thesis broken unless recovery story develops.static

Earnings Growth
1.1
Revenue Growth
1.9
Declining revenue: -2%

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.0
Obv
1.0
Ma Position
4.0
Rsi
4.5
Macd
6.8
Volume distribution (falling OBV)Below 200-MA, MA slope -5.8%/30d — confirmed downtrend
GatesMomentum 3.3<4.5Death cross (50MA < 200MA)A.R:R 2.4 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 28d clearSEMI CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
57 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $17.30Resistance $21.68

Price Targets

$18
$24
A.Upside+25.4%
A.R:R2.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Momentum score 3.3/10 — below 4.5 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-05-28 (28d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is BBWI stock a buy right now?

Sell if holding. Momentum 3.3/10 is below the 5.0 floor at $19.17 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (2); Negative news sentiment (-1.00). Chart setup: Death cross but MACD improving, RSI 57. Prior stop was $17.77. Score 5.2/10, moderate confidence.

What is the BBWI stock price target?

Take-profit target: $24.03 (+25.7% upside). Prior stop was $17.77. Stop-loss: $17.77.

What are the risks of investing in BBWI?

Consecutive earnings misses (2); Negative news sentiment (-1.00); Weak growth.

Is BBWI overvalued or undervalued?

Bath & Body Works, Inc. trades at a P/E of 5.9 (forward 6.4). TrendMatrix value score: 9.1/10. Verdict: Sell.

What do analysts say about BBWI?

22 analysts cover BBWI with a consensus score of 3.6/5. Average price target: $28.

What does Bath & Body Works, Inc. do?Bath and Body Works is a personal care and home fragrance retailer with 1,927 company-operated North American stores,...

Bath and Body Works is a personal care and home fragrance retailer with 1,927 company-operated North American stores, 573 international partner-operated stores in 45+ countries, and 40 million active loyalty members. Revenue is generated through in-store and e-commerce sales; most manufacturing is performed by third-party suppliers concentrated in central Ohio. The company launched a Consumer First Formula transformation in Q3 2025.

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