Bath & Body Works, Inc. (BBWI) Stock Analysis
Falling Knife setup
Consumer Cyclical · Specialty Retail
Sell if holding. Momentum 1.1/10 is below the 5.0 floor at $16.45 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (2); Sector modifier (Consumer Cyclical): -1.5.
Bath & Body Works is a personal care and home fragrance retailer with 1,927 company-operated stores in the U.S. and Canada, 573 international partner stores, and e-commerce across 45+ countries, anchored by a 40-million-member loyalty program. Revenue comes from product sales;... Read more
Sell if holding. Momentum 1.1/10 is below the 5.0 floor at $16.45 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (2); Sector modifier (Consumer Cyclical): -1.5. Chart setup: Death cross, below all MAs, RSI 32, MACD bearish. Score 5.2/10, high confidence.
Passes 5/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.
Recent Developments — Bath & Body Works, Inc.
Latest news
- UBS Maintains Neutral on Bath & Body Works, Lowers Price Target to $19 — benzinga May 20, 2026 negative
- TD Cowen Maintains Buy on Bath & Body Works, Lowers Price Target to $20 — benzinga May 18, 2026 positive
- Piper Sandler Assumes Bath & Body Works at Neutral, Announces Price Target of $20 — benzinga May 15, 2026 neutral
- Reported Sunday, Bath & Body Works Marks Star Wars Day With Mandalorian And Grogu Limited-Edition Collaboration Launchin — benzinga May 4, 2026 positive
- What's Behind The Drop In Bath And Body Works Stock? — benzinga Apr 29, 2026 negative
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSupplierlargest vendor12%10-K Item 1: 'Our largest vendor supplied approximately 12% of our total merchandise purchases (on a dollar basis) during 2025'
- MEDIUMGeographiccentral Ohio10-K Item 1A: 'the geographic concentration of third-party manufacturing facilities and our distribution facilities in central Ohio'
Material Events(8-K, last 90d)
- 2026-02-25Item 5.02MEDIUMMichael Wu ceased as Chief Legal Officer and Corporate Secretary effective February 24, 2026. Company initiated search for next CLO. Wu to serve as non-executive employee through ~March 27, 2026 Separation Date. No successor named.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
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Revenue shrinking — -2.3% YoY. Growth thesis broken unless recovery story develops.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 1.1/10 is below the 5.0 floor at $16.45 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (2); Sector modifier (Consumer Cyclical): -1.5. Chart setup: Death cross, below all MAs, RSI 32, MACD bearish. Prior stop was $15.87. Score 5.2/10, high confidence.
Take-profit target: $23.55 (+43.3% upside). Prior stop was $15.87. Stop-loss: $15.87.
Sector modifier (Consumer Cyclical): -1.5; Consecutive earnings misses (2); Weak growth.
Bath & Body Works, Inc. trades at a P/E of 5.5 (forward 6.0). TrendMatrix value score: 9.2/10. Verdict: Sell.
22 analysts cover BBWI with a consensus score of 3.6/5. Average price target: $27.
What does Bath & Body Works, Inc. do?Bath & Body Works is a personal care and home fragrance retailer with 1,927 company-operated stores in the U.S. and...
Bath & Body Works is a personal care and home fragrance retailer with 1,927 company-operated stores in the U.S. and Canada, 573 international partner stores, and e-commerce across 45+ countries, anchored by a 40-million-member loyalty program. Revenue comes from product sales; Q4 (holiday season) represented ~29% of fiscal 2025 net sales. The largest vendor supplied approximately 12% of merchandise purchases and top-5 vendors ~40% combined.