Bath & Body Works: The Market Is Ignoring This Turnaround Story - For Now

IWA Research 3.48K Followers Follow Summary Bath & Body Works, Inc. remains a Strong Buy, with valuation deeply discounted despite improving fundamentals and robust cash flow. Q2 saw adjusted EPS up 67.6% and guidance raised, with management targeting $650 million in free cash flow and $250 million in cost savings. BBWI’s balance sheet is strengthening through debt repayments and cash generation, positioning it for future buybacks and further expansion. Macro headwinds persist, but BBWI’s strategic initiatives and cyclical positioning offer amplified upside as conditions normalize. M. Suhail/iStock Editorial via Getty Images Introduction In my previous coverage of Bath & Body Works, Inc. ( BBWI ), I reiterated the stock's Strong Buy rating, highlighting how the valuation continues to imply a deep discount while the company's This article was written by IWA Research 3.48K Followers Follow I've been researching companies in-depth for over a decade, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities. Analyst’s Disclosure: I/we have a beneficial long position in the shares of BBWI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.