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Bull of the Day: Victoria's Secret (VSCO)

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The market may be stuck somewhere between “slow grind” and “emotional rollercoaster,” but that doesn’t mean you stop hunting for relative strength. Eventually the noise dies down, the dust settles, and good old-fashioned earnings start doing the talking again. That’s exactly where today’s Bull of the Day steps in, strutting down the runway with something investors haven’t seen in a while: accelerating fundamentals.

I’m talking about Zacks Rank #1 (Strong Buy) Victoria’s Secret & Co. ((VSCO - Free Report) ). This isn’t the Victoria’s Secret turnaround story you remember from a few years ago. This is the next chapter, a leaner, sharper, more disciplined Victoria’s Secret. And analysts are finally starting to respect the pivot.

Recent earnings lit the spark. VSCO came through with a clean beat, but the bigger story is what happened next. Analysts started raising estimates. That’s the lifeblood of the Zacks Rank, and the revisions trend here is undeniably bullish. Over the last sixty days, four analysts have increased their numbers for both the current year and next year. The bullish moves have pushed up our Zacks Consensus Estimates for the current year from $2.01 to $2.38 while next year’s number is up from $2.08 to $2.50. This is what we look for. Not just “cheap.” Not just “beaten down.” We want earnings trends moving in the right direction.

VSCO has emerged as a leaner retailer with real tailwinds. The company has already done the hard work. They’ve streamlined operations, tightened inventory, re-focused product strategy and improved margins while reinvigorating brand collaborations and digital engagement. The result? A retailer that isn’t trying to be everything to everyone, just extremely good at what it does. With improved merchandise performance and more efficient cost controls, profitability is turning the corner. That’s why analysts are no longer just tiptoeing back, they’re walking with conviction.

Despite this momentum, the stock isn’t priced like a winner yet. It still trades as if the turnaround is theoretical rather than underway. That disconnect between earnings revisions and share price is exactly where savvy investors strike. Think of it like being early to a sample sale, you’re getting runway-quality merchandise at clearance pricing.


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