12 Cheap Retail Stocks to Buy According to Hedge Funds

10. Bath & Body Works, Inc. (NYSE:BBWI)

Forward P/E: 10.88

Number of Hedge Fund Holders: 36

Bath & Body Works, Inc. (NYSE:BBWI) is a specialty omnichannel retailer specializing in personal care and home fragrance. It sells its merchandise under Bath & Body Works, White Barn, and other brands. Bath & Body Works, Inc. (NYSE:BBWI) sells its merchandise in around 1,850 company-operated stores and e-commerce sites across the US and Canada. It also has around 485 stores and 28 e-commerce sites in over 40 other countries worldwide, operating under license, franchise, and wholesale arrangements.

The company is driving momentum toward long-term profitable growth by executing its five E strategy. The five Es of its strategy includes elevating the Bath and Body Works brand and core products, engaging with its core customers innovatively, extending its reach to new markets and adjacencies, enhancing its omnichannel experience, and enhancing operational efficiency and excellence. This strategy is proving profitable for the company, as Bath & Body Works, Inc. (NYSE:BBWI) reported a 3% growth in its net sales in fiscal Q3 2024, reflecting a positive growth in its core operations.

It also holds a competitive market edge due to its predominantly US-based supply chain and agile business model. The company ranks fifth on our list and has a forward P/E of 10.88 at a 35.67% discount to its sector. Its median price target of $35.45 implies an upside of 21.30% from current levels. On February 11, Dana Telsey from Telsey Advisory maintained a Buy rating on the company with a price target of $43.00.