We recently published a list of 10 Stocks That Analysts Think Will Go Up. In this article, we are going to take a look at where Bath & Body Works, Inc. (NYSE:BBWI) stands against other stocks that analysts think will go up.
The S&P 500 index touched an all-time high this week as Mark Zuckerberg’s company’s 20-day streak finally came to an end, adding $320 billion to the company’s market cap. The semiconductor stocks once again drove the broader market. However, as the rally cools down, the focus is shifting back to Donald Trump’s tariffs. Automobiles, pharmaceuticals, and semiconductor companies are expected to be hit in the next wave of tariffs which has forced investors to rethink their strategies.
As investors and analysts try to figure out where the market is headed, some companies are more likely to go up in share price than others. We looked through the recent analyst upgrades and shortlisted 10 companies that are likely to go up according to analysts. We also looked at the factors driving this analyst optimism.
To come up with the list of 10 stocks that analysts think will go up, we only considered stocks with a market cap of at least $1 billion that were upgraded this week.
A female customer browsing a variety of body care products in a retail store.
Bath & Body Works, Inc. (NYSE:BBWI)
Bath & Body Works, Inc. (NYSE:BBWI) is a specialty retailer of body care, home fragrances, and soap & sanitizer products. The company distributes its products under the White Barn, Bath & Body Works, and other brands. It sells its products through e-commerce sites and retail stores. The company’s shares surged as it was upgraded recently by J.P. Morgan from Neutral to Overweight.
This upgrade was due to the company’s steady revenue growth and the upside for accelerating growth opportunities through collaboration with Disney and other strategic expansions. After this upgrade, Bath & Body Works (NYSE:BBWI) seems to be well-positioned for a potential turnaround in revenue and profitability. Bath & Body Works’ collaboration with Disney is projected to maintain sales momentum after the holiday season.
Moreover, this collaboration highlights the company’s largest partnership so far which provides a diverse portfolio of products at a wide price range, including a high-value option at $99.95. This indicates the highest price point, exceeding the previous collaborations’ high price of $79.95.
“On the timing of the [Disney] launch, we note a favorable year-over-year comparison on same-store-sales in the month of February, as management on the Q1 2024 earnings call cited ‘at the beginning of the quarter, we leverage promotion to help drive traffic, in light of a floor set that wasn’t resonating with our customers.”
Overall, BBWI ranks 7th on our list of stocks that analysts think will go up. While we acknowledge the potential of BBWI as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as BBWI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.