Wall Street Bullish on BBWI and Other Stocks Despite Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 23 2026
0mins
Source: Yahoo Finance
- BBWI Sales Weakness: Bath and Body Works (BBWI) has experienced declining same-store sales over the past two years, with projected sales down 2.9% over the next year, indicating limited opportunities for new store openings in its core markets, which could impact future profitability.
- DAR Revenue Decline: Darling Ingredients (DAR) has seen a 3.2% annual revenue decline over the past three years, and its low gross margin of 23.8% reflects intense competition and poor unit economics, leading to a 25.6% annual contraction in earnings per share, putting pressure on stock prices.
- NESR Rising Costs: NESR's modest revenue base of $1.43 billion limits its fixed cost leverage, with a gross margin of only 12.7%, and costs have risen faster than revenue over the past five years, causing a 48.4 percentage point decline in EBITDA margin, affecting its investment capacity.
- Market Opportunity Assessment: While Wall Street's price targets suggest potential upside for these stocks, analysts express caution regarding the fundamentals of BBWI, DAR, and NESR, advising investors to consider more promising investment opportunities.
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Analyst Views on BBWI
Wall Street analysts forecast BBWI stock price to rise
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 19.390
Low
15.00
Averages
20.14
High
26.00
Current: 19.390
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.
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