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7 Mid-Cap Stocks to Buy for a Dealmaking Boom in 2025 - 2 of 7

 
 

#2 - Bath & Body Works (NYSE:BBWI)

Since it spun off from the Victoria’s Secret brand, many investors haver overlooked Bath & Body Works Inc. (NYSE: BBWI). But the retailer, known for its home fragrances, body care products, and sanitizers, is establishing itself as a smaller yet resilient company with strong brand loyalty, particularly among millennial and Gen-Z consumers.

That strength was reflected in the company’s third-quarter earnings report for its 2025 fiscal year. Bath & Body Works topped analysts’ estimates on the top and bottom lines, generating 52 cents in earnings per share (EPS) on revenue of $1.61 billion. Both numbers were higher than the same quarter in its FY 2024 third quarter. 

Other factors that may make Bath & Body Works an attractive takeover candidate is a forward price-to-earnings (P/E) ratio of 9.6x and a stock price of $35.92 as of November 25, 2024. That’s 17.6% below analysts' consensus price target of $42.25.  

About Bath & Body Works

Bath & Body Works, Inc is a specialty retailers and home to America's Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. Read More 
Current Price
$38.18
Consensus Rating
Moderate Buy
Ratings Breakdown
10 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$43.19 (13.1% Upside)