Bath & Body Works specializes in making people and things smell good. And it's a market niche that's paying off. Its stock is up about 84% just since the end of October. On Tuesday it reached an important technical milestone. Bath & Body Works stock's Relative Strength (RS) Rating got an upgrade to 82, a rise from 79 the day before.
It's a milestone because market research shows that the best stocks typically have an RS Rating of at least 80 in the early stages of their moves. Bath & Body Works is in that exclusive group now. Additionally, the company has expanded into adjacent markets including its Men's Shop and Moxy Collection of skin, hair and wellness products. That could boost its results further.
Bath & Body Works Turns Corner
The RS Rating upgrade comes as the Columbus, Ohio-based company turns a corner after a difficult period last year. It remains to be seen whether it can hold onto, and improve on, recent gains.
Risk Management In The Stock Market: How Much Money To Invest Now
Bath & Body Works operates 1,800 stores in the U.S. and Canada and also franchises 450 stores. It sells perfumes, soaps, skin care creams and other personal care and grooming products.
Earnings grew 11% last quarter to $2.06 per share. The prior period its EPS grew 20%. The company's revenue growth rate improved every quarter over the past year, albeit coming off weak sales in 2023. Last quarter sales edged up 1% to $2.91 billion, reversing from a 3% drop in sales the prior quarter.
Can It Sustain Momentum?
After its meteoric rise since October, Bath & Body Works stock has consolidated so far this month. See if the stock is able to establish and enter a buy zone with a clear buy point in heavy volume.
Bath & Body Works holds the No. 13 rank among its peers in the 32-stock Retail-Apparel/Shoes/Accessories industry group. Abercrombie & Fitch, Boot Barn Holdings and Ross Stores are among the top 5 highly rated stocks in the group.
IBD's unique Relative Strength Rating identifies market leadership by showing how a stock's price action over the last 52 weeks measures up against that of other stocks on the major indexes
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
RELATED:
Profit From Short-Term Trends With SwingTrader
Which Stocks Are Showing Improved Price Performance?
How Relative Strength Line Can Help You Judge A Stock
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
Identify Bases And Buy Points With Pattern Recognition From MarketSurge
