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Victoria's Secret & Co. (VSXY) Hits Fresh High: Is There Still Room to Run?
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Shares of Victoria's Secret (VSXY - Free Report) have been strong performers lately, with the stock up 28.1% over the past month. The stock hit a new 52-week high of $116.32 in the previous session. Victoria's Secret has gained 109.6% since the start of the year compared to the 6.3% move for the Zacks Retail-Wholesale sector and the -1.6% return for the Zacks Retail - Apparel and Shoes industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on September 3, 2026, Victoria's Secret reported EPS of $0.95 versus consensus estimate of $0.78.
For the current fiscal year, Victoria's Secret is expected to post earnings of $4.75 per share on $7.21 in revenues. This represents a 58.33% change in EPS on a 9.98% change in revenues. For the next fiscal year, the company is expected to earn $5.8 per share on $7.58 in revenues. This represents a year-over-year change of 22.06% and 5.23%, respectively.
Valuation Metrics
Victoria's Secret may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Victoria's Secret has a Value Score of B. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 23.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.8X. On a trailing cash flow basis, the stock currently trades at 18.7X versus its peer group's average of 9.4X. Additionally, the stock has a PEG ratio of 0.76. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Victoria's Secret currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Victoria's Secret meets the list of requirements. Thus, it seems as though Victoria's Secret shares could have a bit more room to run in the near term.
How Does VSXY Stack Up to the Competition?
Shares of VSXY have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Designer Brands Inc. (DBI - Free Report) . DBI has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Designer Brands Inc. beat our consensus estimate by 36.00%, and for the current fiscal year, DBI is expected to post earnings of $0.52 per share on revenue of $2.91 billion.
Shares of Designer Brands Inc. have gained 16.2% over the past month, and currently trade at a forward P/E of 12.98X and a P/CF of 4.99X.
The Retail - Apparel and Shoes industry may rank in the bottom 61% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for VSXY and DBI, even beyond their own solid fundamental situation.
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Victoria's Secret & Co. (VSXY) Hits Fresh High: Is There Still Room to Run?
Shares of Victoria's Secret (VSXY - Free Report) have been strong performers lately, with the stock up 28.1% over the past month. The stock hit a new 52-week high of $116.32 in the previous session. Victoria's Secret has gained 109.6% since the start of the year compared to the 6.3% move for the Zacks Retail-Wholesale sector and the -1.6% return for the Zacks Retail - Apparel and Shoes industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on September 3, 2026, Victoria's Secret reported EPS of $0.95 versus consensus estimate of $0.78.
For the current fiscal year, Victoria's Secret is expected to post earnings of $4.75 per share on $7.21 in revenues. This represents a 58.33% change in EPS on a 9.98% change in revenues. For the next fiscal year, the company is expected to earn $5.8 per share on $7.58 in revenues. This represents a year-over-year change of 22.06% and 5.23%, respectively.
Valuation Metrics
Victoria's Secret may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Victoria's Secret has a Value Score of B. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 23.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.8X. On a trailing cash flow basis, the stock currently trades at 18.7X versus its peer group's average of 9.4X. Additionally, the stock has a PEG ratio of 0.76. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Victoria's Secret currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Victoria's Secret meets the list of requirements. Thus, it seems as though Victoria's Secret shares could have a bit more room to run in the near term.
How Does VSXY Stack Up to the Competition?
Shares of VSXY have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Designer Brands Inc. (DBI - Free Report) . DBI has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Designer Brands Inc. beat our consensus estimate by 36.00%, and for the current fiscal year, DBI is expected to post earnings of $0.52 per share on revenue of $2.91 billion.
Shares of Designer Brands Inc. have gained 16.2% over the past month, and currently trade at a forward P/E of 12.98X and a P/CF of 4.99X.
The Retail - Apparel and Shoes industry may rank in the bottom 61% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for VSXY and DBI, even beyond their own solid fundamental situation.