5 Best Beauty Stocks To Buy Now

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

Number of Hedge Fund Holders: 46

Bath & Body Works, Inc. (NYSE:BBWI)’s cosmetics offerings include fragrances, gels, moisturizers, soaps, body care products. Bath & Body Works, Inc. (NYSE:BBWI) jumped in March after a Bank of America survey indicated that young customers are engaged with the brand. 15% of the respondents in the survey liked the brand more than last year.

BofA maintained a Buy rating on Bath & Body Works, Inc. (NYSE:BBWI).

A total of 46 hedge funds tracked by Insider Monkey had stakes in Bath & Body Works, Inc. (NYSE:BBWI). The total value of these stakes was $2.9 billion.

Third Point made the following comment about Bath & Body Works, Inc. (NYSE:BBWI) in its Q4 2022 investor letter:

“We initiated a position in Bath & Body Works, Inc. (NYSE:BBWI) earlier in the year that we added to significantly in the Fourth Quarter. The company, which sells personal care and home fragrance products, separated from Victoria’s Secret in late 2021 and has struggled to find its footing in the public markets. Bath & Body Works was challenged by the normalization of trends following the pandemic, but also suffered from execution hiccups that made matters worse. On the operations front, the company spent much of 2022 without a permanent CEO, cut guidance multiple times given inventory and cost pressures, and did a poor job communicating meaningful increases in the company’s cost structure as a standalone business. On the capital allocation front, the execution of an accelerated share repurchase program was sloppy at best.

Despite these recent struggles, we believe BBWI can change its equity story, improve its earnings power, and earn a more premium valuation. The recent appointment of a new CEO, Gina Boswell from Unilever, is an encouraging first step…” (Click here to read the full text)