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BBWI · NASDAQ · STOCK

Bath & Body Works, Inc.

Consumer Cyclical Updated August 09, 2026
$19.60
52W $14.28 – $32.32
49/100
$4.10B
5.9
1.38
AI Committee Verdict
Watch
49/100
Conviction: Contested · 50% agreement · 6 analysts
+6.5%
-17.8%
0.36:1
Contested

Is BBWI Bullish or Bearish?

Mixed. Innellis AI committee rates Bath & Body Works, Inc. (BBWI) Watch with a composite score of 49/100 , based on 6 analysts with 50% agreement. Last updated August 09, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +10.97 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -9.03 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Macro Analyst sees a compelling case — market regime is bullish (bull market -- normal position sizing). Growth Analyst remains cautious — revenue declining -1.4% yoy -- this is not a growth story right now. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • P/E of 5.6 is inexpensive for the broad market — Value
  • ROE of 3138.9% shows genuine earnings power backing the valuation — Value
  • Dividend yield of 4.0% pays you to wait — Value
  • MACD histogram positive -- bullish momentum — Technical
  • Market regime is bullish (Bull market -- normal position sizing) — Macro
  • Beta of 1.40 means this name should amplify a favorable market regime — Macro
Bear Case
  • Price-to-book of 1379.7x prices in significant intangible value — Value
  • Debt-to-equity of 262.33 adds balance-sheet risk to the value case — Value
  • Revenue declining -1.4% YoY -- this is not a growth story right now — Growth
  • EPS declining -5.1% YoY despite any revenue growth — Growth
  • Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
  • High leverage (debt-to-equity 262.33) amplifies downside in a stress scenario — Risk
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 09, 2026
Overall Committee Score
49/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 96%
of 124 Consumer Cyclical peers
Value Analyst neutral
55 / 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ P/E of 5.6 is inexpensive for the broad market
− Price-to-book of 1379.7x prices in significant intangible value
Growth Analyst bearish
23 / 100 · High confidence
Growth story is weak, decelerating, or inconsistent
− Revenue declining -1.4% YoY -- this is not a growth story right now
Technical Analyst neutral
58 / 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
Risk Analyst bearish
30 / 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 262.33) amplifies downside in a stress scenario
Macro Analyst bullish
70 / 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst neutral
58 / 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager neutral
55 / 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
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Investment Thesis Evolution

Committee score weakened from 55.2 to 49.0.

Analyst-level changes:
  • Growth Analyst: score 35->23 (-12); +2 bearish signal(s).
  • Macro Analyst: +1 bullish signal(s).
  • Risk Analyst joined: bearish at 30.
  • Value Analyst joined: neutral at 55.

Comparing 2026-08-08 to 2026-08-09 (1 day apart).

Technical Analysis

RSI (14)
48.7
Neutral
MACD Histogram
0.004
Bullish Momentum
Trend Direction
Sideways
Weekly: Downtrend
Market Structure
Hh Hl
Support
$16.73
Resistance
$21.67
Bollinger %B
0.50
Inside Bands
Price vs Moving Averages
EMA 9
$20.42 Below
EMA 21
$20.42 Below
EMA 50
$20.22 Below
EMA 200
$21.59 Below

Fundamental Analysis

Valuation
100
Growth
40
Profitability
52
Financial Health
74
Cash Flow
70
Valuation
P/E Ratio 5.9×
P/B Ratio -3.63×
PEG Ratio -0.76
Dividend Yield 3.93%
52W High $32.32
52W Low $14.28
Quality & Growth
ROE -5074.3%
ROA 1280.3%
Gross Margin 4318.8%
Operating Margin 1584.5%
Revenue Growth YoY
Debt / Equity -4.16
AI Fundamental Assessment
P/E ratio of 5.9 (inexpensive relative to a 15-40x range); Price-to-book of -3.6x; PEG ratio of -0.8 (under 1.0 suggests growth is undervalued relative to price); Return on equity of -50.7%; Return on assets of 12.8%; Net margin of 10.0%; Gross margin of 43.2%; Current ratio of 1.38 (tight short-term liquidity); Debt-to-equity of -4.16; Free cash flow per share is positive (4.50); Most recent quarter beat estimates by 7.6%; 2 consecutive earnings beats; EPS growth decelerating (+485.7% -> -84.4% QoQ); Analyst estimates falling over recent quarters
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📈 Rating History 💰 Earnings 📰 Recent Events 🔄 What Changed 📖 Thesis Evolution 🔍 Similar Stocks
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