Latest news with #BBWI
Yahoo
5 days ago
- Business
- Yahoo
The three-year shareholder returns and company earnings persist lower as Bath & Body Works (NYSE:BBWI) stock falls a further 6.5% in past week
Many investors define successful investing as beating the market average over the long term. But if you try your hand at stock picking, you risk returning less than the market. Unfortunately, that's been the case for longer term Bath & Body Works, Inc. (NYSE:BBWI) shareholders, since the share price is down 20% in the last three years, falling well short of the market return of around 57%. Even worse, it's down 13% in about a month, which isn't fun at all. After losing 6.5% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During the three years that the share price fell, Bath & Body Works' earnings per share (EPS) dropped by 4.3% each year. This reduction in EPS is slower than the 7% annual reduction in the share price. So it seems the market was too confident about the business, in the past. The less favorable sentiment is reflected in its current P/E ratio of 7.50. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on Bath & Body Works' earnings, revenue and cash flow. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Bath & Body Works, it has a TSR of -14% for the last 3 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective While the broader market gained around 23% in the last year, Bath & Body Works shareholders lost 6.3% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 8%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Bath & Body Works better, we need to consider many other factors. Take risks, for example - Bath & Body Works has 3 warning signs (and 1 which can't be ignored) we think you should know about. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
Yahoo
5 days ago
- Business
- Yahoo
The three-year shareholder returns and company earnings persist lower as Bath & Body Works (NYSE:BBWI) stock falls a further 6.5% in past week
Many investors define successful investing as beating the market average over the long term. But if you try your hand at stock picking, you risk returning less than the market. Unfortunately, that's been the case for longer term Bath & Body Works, Inc. (NYSE:BBWI) shareholders, since the share price is down 20% in the last three years, falling well short of the market return of around 57%. Even worse, it's down 13% in about a month, which isn't fun at all. After losing 6.5% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During the three years that the share price fell, Bath & Body Works' earnings per share (EPS) dropped by 4.3% each year. This reduction in EPS is slower than the 7% annual reduction in the share price. So it seems the market was too confident about the business, in the past. The less favorable sentiment is reflected in its current P/E ratio of 7.50. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on Bath & Body Works' earnings, revenue and cash flow. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Bath & Body Works, it has a TSR of -14% for the last 3 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective While the broader market gained around 23% in the last year, Bath & Body Works shareholders lost 6.3% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 8%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Bath & Body Works better, we need to consider many other factors. Take risks, for example - Bath & Body Works has 3 warning signs (and 1 which can't be ignored) we think you should know about. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
Yahoo
31-07-2025
- Business
- Yahoo
Looking for a Growth Stock? 3 Reasons Why Bath & Body Works (BBWI) is a Solid Choice
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. Bath & Body Works (BBWI) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). Here are three of the most important factors that make the stock of this owner of Victoria's Secret, Bath & Body Works and other chain stores a great growth pick right now. Earnings Growth Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Bath & Body Works is 0.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 5.7% this year, crushing the industry average, which calls for EPS growth of 2.9%. Impressive Asset Utilization Ratio Asset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales. Right now, Bath & Body Works has an S/TA ratio of 1.49, which means that the company gets $1.49 in sales for each dollar in assets. Comparing this to the industry average of 1.28, it can be said that the company is more efficient. In addition to efficiency in generating sales, sales growth plays an important role. And Bath & Body Works is well positioned from a sales growth perspective too. The company's sales are expected to grow 2.4% this year versus the industry average of 1.2%. Promising Earnings Estimate Revisions Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. There have been upward revisions in current-year earnings estimates for Bath & Body Works. The Zacks Consensus Estimate for the current year has surged 0.7% over the past month. Bottom Line Bath & Body Works has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination positions Bath & Body Works well for outperformance, so growth investors may want to bet on it. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bath & Body Works, Inc. (BBWI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
04-07-2025
- Business
- Yahoo
Bath & Body (BBWI) Works Jumps 7.3% on Improving Global Trade
Bath & Body Works, Inc. (NYSE:BBWI) is one of . Bath & Body Works jumped by 7.31 percent on Tuesday to close at $32.15 apiece as investor sentiment was largely fueled by the improving trade relations between the US and its key trading partners. On Tuesday, Bloomberg reported that the European Union was open to accepting President Donald Trump's trade arrangement as the two parties scramble to reach an agreement by the July 9 deadline, although it wants the US to lower tariffs on critical industries such as automotive, steel, and aluminum. A female customer browsing a variety of body care products in a retail store. The trade negotiations followed the US's trade deals with the UK and China earlier last month, sparking hopes for broader global trade stability. The development spilled over to companies with high exposure to international trade, such as Bath & Body Works, Inc. (NYSE:BBWI), as improving trade relations sparked confidence for their future growth. It can be recalled that Bath & Body Works, Inc. (NYSE:BBWI) previously lowered its annual sales forecast below expectations amid uncertainties in consumer spending due to the global trade tensions. While the majority of its products are produced in the US, it sources components from other countries. While we acknowledge the potential of BBWI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
Bath & Body (BBWI) Works Jumps 7.3% on Improving Global Trade
Bath & Body Works, Inc. (NYSE:BBWI) is one of . Bath & Body Works jumped by 7.31 percent on Tuesday to close at $32.15 apiece as investor sentiment was largely fueled by the improving trade relations between the US and its key trading partners. On Tuesday, Bloomberg reported that the European Union was open to accepting President Donald Trump's trade arrangement as the two parties scramble to reach an agreement by the July 9 deadline, although it wants the US to lower tariffs on critical industries such as automotive, steel, and aluminum. A female customer browsing a variety of body care products in a retail store. The trade negotiations followed the US's trade deals with the UK and China earlier last month, sparking hopes for broader global trade stability. The development spilled over to companies with high exposure to international trade, such as Bath & Body Works, Inc. (NYSE:BBWI), as improving trade relations sparked confidence for their future growth. It can be recalled that Bath & Body Works, Inc. (NYSE:BBWI) previously lowered its annual sales forecast below expectations amid uncertainties in consumer spending due to the global trade tensions. While the majority of its products are produced in the US, it sources components from other countries. While we acknowledge the potential of BBWI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
