Validea's Top Consumer Discretionary Stocks Based On Joel Greenblatt - 4/29/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2025
0mins
Should l Buy BBWI?
Source: NASDAQ.COM
Top Rated Consumer Discretionary Stock: Bath & Body Works Inc. (BBWI) is highlighted as a top-rated stock according to Joel Greenblatt's Earnings Yield Investor model, achieving a 100% rating based on its strong fundamentals and valuation.
Company Overview: Bath & Body Works is a global retailer specializing in personal care and home fragrance products, operating over 1,890 locations in the U.S. and Canada, alongside an online storefront, and offering various shopping options including buy online pick-up in-store (BOPIS).
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Analyst Views on BBWI
Wall Street analysts forecast BBWI stock price to fall
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 22.860
Low
15.00
Averages
20.14
High
26.00
Current: 22.860
Low
15.00
Averages
20.14
High
26.00
About BBWI
Bath & Body Works, Inc. is a global omnichannel retailer focused on personal care and home fragrance. The Company offers a range of fragrances for the body and home, including selling collections for 3-wick candles, home fragrance diffusers, fine fragrance mists, liquid hand soaps, body lotions and body creams. It delivers customers their fragrances in multiple forms and categories. The Company sells merchandise through its retail stores in the United States and Canada, and through its Websites and other channels, under the Bath & Body Works, White Barn and other brand names. The Company’s international business is conducted through franchise, license and wholesale partners. It provides in-store experiences at more than 1,890 Company-operated Bath & Body Works locations in the United States and Canada, more than 525 international franchised locations and an online storefront at bathandbodyworks.com. Additionally, it offers a buy online pick-up in-store (BOPIS) option.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Class Action Notice: The Schall Law Firm reminds investors of a class action lawsuit against Bath & Body Works, Inc. (NYSE:BBWI) for violations of securities laws during the period from June 4, 2024, to November 19, 2025, urging affected investors to contact the firm before March 16, 2026.
- False Statement Allegations: The complaint alleges that Bath & Body Works made false and misleading statements regarding its business strategy, particularly its failure to grow its customer base and net sales through its approach of seeking 'adjacencies, collaborations, and promotions', resulting in investor losses.
- Failed Brand Collaborations: The company resorted to brand collaborations to 'carry quarters' despite weak financial results, which did not improve its financial condition and increased the risk of losses for investors.
- Legal Representation Information: The Schall Law Firm specializes in securities class action lawsuits, and investors can contact the firm through its website or phone to discuss their rights and participate in the lawsuit to seek compensation for their losses.
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- Class Action Timeline: Investors who purchased Bath & Body Works (NYSE: BBWI) securities between June 4, 2024, and November 19, 2025, should note that the deadline to apply as lead plaintiff is March 16, 2026, and failure to apply may result in loss of compensation rights.
- Lawsuit Background: The lawsuit alleges that the company made materially false statements during this period, failing to disclose that its strategy of 'adjacencies, collaborations, and promotions' was not effectively growing its customer base, leading to investor losses when the truth emerged.
- Legal Counsel Recommendation: Investors are encouraged to select law firms with a proven track record; Rosen Law Firm is recognized for its success in securities class actions and has secured significant settlements, ensuring effective protection of investor rights.
- Participation Instructions: Investors can join the class action by visiting the specified website or calling the toll-free number, and it is crucial to choose appropriate legal counsel as investors are not represented until the class is certified.
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- Lawsuit Background: Bath & Body Works, Inc. faces a class action lawsuit for alleged violations of federal securities laws, targeting investors who purchased the company's securities between June 4, 2024, and November 19, 2025, aiming to recover damages.
- False Statements Allegation: The complaint alleges that company executives made materially false and misleading statements during the class period, failing to disclose adverse facts about the company's business and financial outlook, misleading investors.
- Financial Guidance Missteps: The lawsuit highlights that the company's strategy of 'adjacencies, collaborations, and promotions' did not effectively grow the customer base and relied on brand collaborations to mask weak financial results, likely leading to unmet financial guidance.
- Investor Rights Protection: Investors in Bath & Body have until March 13, 2026, to apply as lead plaintiffs, with the law firm representing them on a contingency fee basis, ensuring that investor rights are restored in the process.
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- Legal Investigation: Faruq & Faruq LLP is investigating potential claims against Bath & Body Works due to possible false statements made during securities transactions between June 4, 2024, and November 19, 2025, which may have harmed investors' rights.
- Declining Financial Performance: In Q3 2025, Bath & Body Works reported a 1% year-over-year revenue decline, missing its growth guidance of 1-3%, with net income plummeting 26% to $77 million, indicating a failure in the company's strategy.
- Acknowledgment of Strategic Failures: The company admitted during an investor presentation that its focus on “adjacencies, collaborations, and promotions” failed to effectively grow its customer base, leading to reduced investment in core categories and reliance on brand collaborations to mask weak financial results.
- Significant Stock Price Drop: Following the disappointing earnings report, Bath & Body Works' stock price fell by $5.22, or 24.8%, closing at $15.82 per share, reflecting market pessimism regarding the company's future prospects.
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- Class Action Timeline: Investors who purchased Bath & Body Works (NYSE: BBWI) securities between June 4, 2024, and November 19, 2025, should note that the deadline to apply as lead plaintiff is March 16, 2026, and failing to act may result in loss of compensation rights.
- Lawsuit Allegations: The lawsuit claims that the company made materially false statements during the class period, failing to disclose that its strategy of 'adjacencies, collaborations, and promotions' was not effectively growing its customer base, leading to investor losses when the truth emerged.
- Law Firm Credentials: The Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first by ISS Securities Class Action Services in 2017, showcasing its expertise and success in this field.
- How to Participate: Investors can join the class action by visiting the Rosen Law Firm's website or calling toll-free at 866-767-3653 to ensure their rights are protected, emphasizing the importance of selecting qualified legal counsel over inexperienced intermediaries.
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- Bath & Body Works Lawsuit: Bath & Body Works faces a class action for failing to disclose that its strategy of 'adjacencies, collaborations, and promotions' did not effectively grow its customer base, resulting in a 1% year-over-year revenue decline in Q3 2025, missing the 1-3% growth guidance, and a 26% drop in net income to $77 million, highlighting the company's financial fragility.
- Guidance Downgrade: The company slashed its full-year net sales guidance below expectations and cut earnings per share from $3.28 to at least $2.83, indicating uncertainty in future profitability, which could undermine investor confidence.
- BellRing Brands Lawsuit: BellRing Brands is facing a class action for not disclosing that strong sales results were not due to increased consumer demand but rather excess inventory accumulated by customers due to previous product shortages, leading to a bleak 2025 sales outlook with net sales projected between $2.28 billion and $2.32 billion, reflecting weakening market demand.
- Significant Stock Declines: Following the disappointing financial reports, Bath & Body Works' stock plummeted 24.8% to close at $15.82 per share, while BellRing's stock dropped nearly 33% to $36.18 per share on August 5, 2025, indicating a pessimistic outlook for both companies' future performance.
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