The technique has proven to be very useful for finding positive surprises. Despite the company’s stock rally, Trefis estimates Bath & Body Work’s Valuation at about $71 per share, around 11% above the current market price based on two key opportunities. Rosen said the team is building on the success of its men’s business to include grooming, initially focusing on face and beard care and later this year, introducing men’s hair and shaving.
Dividend Volatility
- It’s encouraging to see that Bath & Body Works has been growing its earnings per share at 11% a year over the past five years.
- Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable.
- Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity.
- Bath & Body Works updated its full-year forecast to reflect better-than-expected bottom line results and the impact of the gain on the early extinguishment of debt in the first quarter.
Looking forward, earnings per share is forecast to rise by 6.7% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 17% by next year, which is in a pretty sustainable range. Bath & Body Works’ (BBWI) challenges with sales growth reflect a consumer market that is being thoughtful in where they spend, notes Greg Portell. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
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Bath & Body Works Inc BBWI
According to 15 analysts, the average rating for BBWI stock is “Buy.” The 12-month stock price forecast is $45.8, which is an increase of 44.55% from the latest price. A breakdown of the sales numbers by president Julie Rosen showed that men’s body and wellness posted positive growth for the quarter, but sales of its broader body care category declined, as did home fragrance. With a relatively unstable dividend, it’s even more important to see if earnings per share is growing. It’s encouraging to see that Bath & Body Works has been growing its earnings per share at 11% a year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.
BBWI’s revenue (as a part of L Brands) grew at a compounded annual growth rate of 14.2% from $4.2 billion in 2017 to $6.2 billion in 2020. Bath & Body Works was a frequent bright spot through 2020 due to its direct channel despite all of its stores being closed for parts during the early months of lockdown. In the recent Q2 as well, the company’s total revenue grew 43% year-over-year (y-o-y) to $3.3 billion and grew a strong 54% compared to the second quarter of 2019.
While BBWI’s revenues grew at a CAGR of 14% between 2017 and 2020, ULTA’s ULTA revenue grew marginally during this period. While we acknowledge that BBWI’s revenue base of around $11.8 billion (in 2020) was much higher compared to around $6.1 billion for ULTA, still the growth BBWI has posted is meaningful. It should be noted that since Victoria’s Secret revenues will no longer be adding on going forward, we expect BBWI’s revenue base to shrink to $7.9 billion in fiscal 2021.
In 2023, BBWI’s revenue was $7.43 billion, a decrease of -1.73% compared to the previous year’s $7.56 billion. We’d like to share more about how we work and what drives our day-to-day business. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries.
The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Bath & Body Works’ stock price has reduced by 35% in the last 3 months, which is not ideal for investors and can explain a sharp increase in the dividend yield. Shares of retailer Bath & Body Works (BBWI) slid in premarket trading Tuesday despite a first-quarter earnings report that surpassed analyst expectations and the company’s own guidance.
That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. Bath & Body Works updated its full-year forecast to reflect better-than-expected bottom line results and the impact of the gain on the early extinguishment of debt in the first quarter. It now expects full-year earnings per diluted share to be between $2.70 and $3.10, compared to $3.40 in 2022. The business is launching into hair care, and planning laundry products. HOUSTON–(BUSINESS WIRE)–LandBridge Company LLC (“LandBridge”) today priced its initial public offering of 14,500,000 Class A shares representing limited liability company interests (“Class A shares”…
In addition, in July, it will launch hair care in approximately 560 stores and online with shampoo, conditioner and a dry shampoo. “Looking ahead, we are moving with purpose, focused on taking actions and building the capabilities that will drive profitable growth. The company reported net sales of nearly $1.4 billion, a decrease of 4 percent compared to the same period a year earlier, but roughly in line with analysts’ expectations. The company reported first-quarter adjusted earnings of 38 cents a share on revenue of $1.38 billion—better than Wall Street’s expectations of 33 cents on $1.37 billion. The scores are based on the trading styles of Value, Growth, and Momentum.
Bath & Body Works forecast full-year profit largely below market estimates on Tuesday and said it expects annual sales to drop, signaling demand for its scented candles and body care products would re… We believe Bath & Body Works has carved out a solid competitive edge in the sizable addressable markets in which it operates. Although the company has a long dividend history, it has been cut at least once in the last 10 years. The dividend has gone from an annual total of $1.20 in 2014 to the most recent total annual payment of $0.80. Generally, we don’t like to see a dividend that has been declining over time as this can degrade shareholders’ returns and indicate that the company may be running into problems.
Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. The second key opportunity stems from BBWI’s valuation multiple compared to its peers. The stock now trades at a reasonable 14x projected 2021 earnings per share of about $5.26, per Trefis estimates. This is lower when compared to its peer, Ulta Beauty, trading at 24x forward earnings.
David Capobianco, LandBridge founder and chairman, joins ‘Money Movers’ to discuss the company’s upcoming market debut at the New York Stock Exchange. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank.
Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations.
There’s also a VGM Score (‘V’ for Value, ‘G’ for Growth and ‘M’ for Momentum), which combines the weighted average of the individual style scores into one score. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Just as an example, we’ve come across 4 warning signs for Bath & Body Works you should be aware of, and 1 of them shouldn’t be ignored.
Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock. Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. As an investor, you want to buy stocks with the highest probability of success.
It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. NEW YORK–(BUSINESS WIRE)– #CPG–The Church Pension Group (CPG), a financial services organization that serves The Episcopal Church, announced the release of its online 2024 Annual Report (cpg.org/an… An industry with a larger percentage of Zacks Rank #1’s and #2’s will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4’s and #5’s.