Amid market uncertainty driven by high oil prices, elevated inflation, and Federal Reserve policy concerns, Zacks highlights five broker-favored stocks expected to report third-quarter earnings this week. The featured companies—Cracker Barrel, Best Buy, Beazer Homes USA, Cleveland-Cliffs, and Bath & Body Works—have demonstrated strong earnings beat records and are benefiting from operational improvements, innovation, and market recovery trends.

Amid market uncertainty driven by high oil prices, elevated inflation, and Federal Reserve policy concerns, investors are advised to follow broker recommendations. A stock screen identified five broker-favored picks based on upgrades, positive earnings revisions, and low price-to-sales ratios: Cracker Barrel, Best Buy, Beazer Homes, Cleveland-Cliffs, and Bath & Body Works.

Bath & Body Works (BBWI) is implementing its Consumer First Formula strategy, focusing on product innovation and brand engagement to strengthen demand among value-conscious consumers. While successful launches like Fruit Fusion achieved higher pricing, overall Q2 fiscal 2026 sales declined 2.3% to $1.51 billion, with body care sales falling mid-single digits. The company plans $35 million in incremental marketing investments and is exiting Home Care to concentrate resources on higher-productivity categories.

Bath & Body Works shares surged 8.7% to close at $17.46 on solid volume, despite a 17.7% loss over the past four weeks. The company is expected to report quarterly earnings of $0.11 per share (down 68.6% year-over-year) with revenues of $1.54 billion (down 3.4%). However, a positive 0.9% upward revision in EPS estimates over the last 30 days suggests potential near-term strength. The stock carries a Zacks Rank #3 (Hold) rating.

Bath & Body Works (BBWI) exceeded Q2 earnings and sales expectations with adjusted EPS of 62 cents (vs. 24 cents consensus) and net sales of $1,514 million. The company returned to direct sales growth for the first time since 2021, benefiting from improved digital conversion and expanded distribution. BBWI raised its FY'26 adjusted EPS guidance to $2.60-$2.80 and free cash flow to $650 million, driving shares up 7.5%.

Bath & Body Works launched Fruit Fusion, a new fruit-forward body care franchise featuring four juicy scents with hydrating formulas. The brand partnered with actress and singer Hilary Duff as brand ambassador and creative partner. The launch includes a comprehensive 360-degree marketing campaign and marks the brand's first major product launch on Amazon. Fruit Fusion is designed as a long-term franchise with planned expansion.

The Dow Jones Industrial Average reached a record high above 50,600 while the Nasdaq 100 declined 0.7% on Wednesday. Oil prices fell sharply below $90 per barrel following reports of potential Iran negotiations, benefiting travel and leisure stocks. The S&P 500 edged slightly lower as semiconductor stocks retreated, while consumer discretionary and hospitality sectors led gains.

Bath & Body Works (NYSE: BBWI) announced a regular quarterly cash dividend of $0.20 per share, payable on June 19, 2026, to shareholders of record as of June 5, 2026.

Bath & Body Works has launched a limited-edition Star Wars: The Mandalorian and Grogu collection featuring three original fragrances (Force Flow, Bounty Hunter, and Ice Planet) and collectible accessories. The collection debuts May 4 for rewards members and May 11 for all customers across the US and Canada, with international expansion to over 40 markets by end of 2026, timed to coincide with the film's theatrical release on May 22.

During market volatility, consumer goods stocks with durable demand and strong fundamentals offer attractive entry points. The article recommends six undervalued consumer stocks suitable for long-term investors with $1,000 to deploy: Post Holdings, Utz Brands, Hormel Foods, Bath & Body Works, Conagra Brands, and Clorox. These companies benefit from steady consumer demand and offer resilience during economic uncertainty.

U.S. equity markets rebounded from seven-month lows on Monday as President Trump disclosed negotiations with Iran and Fed Chair Powell downplayed imminent rate hikes, calling tariffs a 'one-time price bump.' Treasury yields fell significantly, boosting financial, materials, and real estate sectors. Major indices gained broadly, with the S&P 500 up 0.7%, Dow up 1.1%, and Nasdaq 100 up 0.5%.

A securities class action lawsuit has been filed against Bath & Body Works, Inc. alleging that the company made materially false and misleading statements about its business strategy and financial guidance. The lawsuit claims that Bath & Body Works' strategy of pursuing 'adjacencies, collaborations and promotions' failed to grow the customer base and deliver promised net sales growth, and that the company relied on brand collaborations to mask weak financial results. Investors who purchased BBWI securities between June 4, 2024 and November 19, 2025 may be eligible for compensation. The deadline to serve as lead plaintiff is March 16, 2026.