VSCO Should I Buy
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Victoria's Secret & Co (VSCO) is not a strong buy at this moment for a beginner investor with a long-term strategy. The stock is facing negative sentiment due to recent financial underperformance, ongoing investigations, and asset impairments. While analysts have mixed ratings with some optimism, the lack of significant trading signals, coupled with weak financial performance and negative news, suggests holding off on investing for now.
The MACD is positive and expanding, indicating slight bullish momentum. RSI is neutral at 51.622, showing no clear overbought or oversold condition. The stock is trading near its pivot level of 45.328, with resistance at 48.074 and support at 42.581. Overall, the technical indicators suggest a neutral trend.
Analysts from JPMorgan, UBS, and Barclays have raised price targets, citing improving brand momentum and successful repositioning of core brands. Revenue increased by 7.74% YoY in Q4 2026.
The company is under investigation for securities fraud. Q4 2026 net income dropped by 4.66% YoY, with a significant asset impairment loss of $116.9 million. EPS dropped by 121.50% YoY, and gross margin declined by 3.24%. Stock price fell 22.13% after the financial report.
In Q4 2026, revenue grew by 7.74% YoY to $2.27 billion. However, net income decreased by 4.66% YoY to $184 million. EPS dropped significantly by 121.50% YoY to -0.46, and gross margin declined to 36.48%. Overall, financial performance shows growth in revenue but significant challenges in profitability.
Analysts have mixed ratings. JPMorgan and UBS are optimistic with raised price targets ($77 and $81, respectively) and overweight/buy ratings. Others like TD Cowen and BofA are more cautious, with hold/neutral ratings and lower price targets ($58). Barclays and Jefferies recommend buying on weakness but have lowered price targets.
