13 Most Undervalued Retail Stocks to Buy Right Now

8. Bath & Body Works, Inc. (NYSE:BBWI)

Forward P/E: 7.23

Number of Hedge Fund Holders: 54

Bath & Body Works, Inc. (NYSE:BBWI) is one of the 13 Most Undervalued Retail Stocks to Buy Right Now. Analyst Alexandra Straton from Morgan Stanley maintained a Buy rating on Bath & Body Works, Inc. (NYSE:BBWI) on May 30, slashing the price target to $41 from $43. The analyst based the rating on the company’s potential for future growth following its fiscal Q1 2025 earnings report.

Straton exited the Q1 report with “a more negative tilt to our Overweight rating,” stating that there are several reasons behind the negative stock reaction after earnings. These include lesser-than-expected insulation from tariffs, the Q2 guidance suggesting a quarter-over-quarter sales deceleration, and a “noisier” reiteration of fiscal year guidance.

However, the analyst acknowledged that Bath & Body Works, Inc. (NYSE:BBWI) holds the potential to attain positive earnings per share revisions by 2025. Straton supported this optimistic outlook by highlighting the company’s favorable market position, citing its higher category growth and profitability compared to its peers in the Specialty Retail sector.

Bath & Body Works, Inc. (NYSE:BBWI) is a specialty omnichannel retailer specializing in personal care and home fragrance. It sells its merchandise under Bath & Body Works, White Barn, and other brands. Bath & Body Works, Inc. (NYSE:BBWI) sells its merchandise in around 1,850 company-operated stores and e-commerce sites across the US and Canada.