Bath & Body Works (BBWI): Valuation Check After Earnings Miss, Lower Guidance and Insider Buying

Bath & Body Works (BBWI) just put investors through a rough quarter, missing earnings, trimming its full year outlook, and sending the stock into a sharp slide that has value hunters paying closer attention. See our latest analysis for Bath & Body Works. Those shaky results land on top of a tough stretch, with the share price at $19.94 and a year to date share price return of about negative 47 percent. The one year total shareholder return of roughly negative 45 percent shows how prolonged the reset has been, even as short term share price returns have ticked higher in recent days. If the Bath & Body Works sell off has you rethinking your playbook, this could be a good moment to explore fast growing stocks with high insider ownership for other ideas where insiders are leaning in rather than backing away. With shares now trading at a steep discount to both past levels and analyst targets, the key question is whether the sell off has swung Bath & Body Works into undervalued territory or if the market is accurately pricing in muted growth. Most Popular Narrative Narrative: 51% Undervalued Bath & Body Works last traded at $19.94, while the most followed narrative pegs fair value at roughly double that level, creating a wide perception gap. Bath and Body Works is an interesting company to try and project for since it has so many irregular attributes that make it trickier to predict future growth. The biggest reason it becomes hard to value is because of the spin off from L Brands back in 2021, when Bath and Body Works and Victoria's Secret became two separate companies. Read the complete narrative. Want to see how modest revenue growth, expanding margins and a punchy future earnings multiple combine to justify that price? The full narrative reveals the playbook. Result: Fair Value of $40.73 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this bullish case could unravel if debt reduction stalls or if international and male-focused growth fail to materialize as management hopes. Find out about the key risks to this Bath & Body Works narrative. Build Your Own Bath & Body Works Narrative If this storyline does not quite fit your view, or you prefer to dig into the numbers yourself, you can build a custom narrative in minutes: Do it your way A great starting point for your Bath & Body Works research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision. Looking for more investment ideas? Before you move on, lock in your next steps with fresh opportunities curated by the Simply Wall St screener so you are not relying on just one turnaround story. Capture potential mispricings by targeting stocks that screens flag as attractive in these 904 undervalued stocks based on cash flows based on their future cash flows and fundamentals. Ride structural growth trends by focusing on innovators shaping the future of automation, analytics and smart software with these 25 AI penny stocks. Strengthen your portfolio’s income engine by tapping businesses that feature reliable payouts using these 12 dividend stocks with yields > 3%. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech