Why Bath and Body Works Inc. (BBWI) Skyrocketed On Monday?

We recently published a list of Biotech Stocks Dominate Monday’s Top 10 Gainers. In this article, we are going to take a look at where Bath and Body Works Inc. (NYSE:BBWI) stands against other biotech stocks that dominate Monday’s top gainers.

The stock market kicked off the shortened trading week on a positive note, with Wall Street’s major indices finishing in the green following President Donald Trump’s temporary tax reprieve on technology companies.

The S&P 500 recorded the highest gain, up 0.79 percent, while the Dow Jones came second at 0.78 percent. The tech-heavy Nasdaq was also up by 0.64 percent.

Benchmark indices aside, 10 companies dominated by biotechnology firms mirrored the broader market optimism, recording modest gains during the session.

In this article, let us explore Monday’s top 10 gainers and the reasons behind their gains.

To come up with the list, we only considered the stocks with $2 billion market capitalization and $5 million trading volume.

A female customer browsing a variety of body care products in a retail store.

Bath and Body Works Inc. (NYSE:BBWI)

Bath and Body Works snapped a two-day losing streak on Monday, gaining 7.55 percent to close at $28.65 each as investors resorted to bargain-hunting, shunning an investment firm’s rating downgrade for the company.

On Monday, JPMorgan reduced its price target for BBWI by 12.8 percent to $41 from $47 previously but maintained its ‘overweight’ rating on the shares. Despite the downgrade, the new price target was still 43 percent higher than the company’s closing price on Monday.

Meanwhile, the overweight rating indicated that the company still has the potential to outperform average market returns.

BBWI forecast annual sales largely below expectations as it grapples with uncertainties in consumer spending due to the US-China trade war.

In other news, BBWI earned an upgraded rating of Overweight from investment firm Piper Sandler, saying that, along with Inter Parfums, it was well-positioned to benefit from the increasing demand in the fragrance category.

Overall, BBWI ranks 10th on our list of biotech stocks that dominate Monday’s top gainers. While we acknowledge the potential of BBWI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BBWI but that trades at less than 5 times its earnings, check out our report about this cheapest 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.