Victoria's Secret stock shows potential despite valuation concerns
Victoria's Secret shares rose 8.01%, reaching a 5-day high, despite the broader market decline with the Nasdaq-100 down 1.14% and S&P 500 down 0.51%.
The stock's performance reflects a 49.9% return over the past year and a 2.2% gain year-to-date, although it experienced an 8.8% decline last week, indicating increased short-term volatility. The DCF model suggests the stock is undervalued by 41.3%, which could attract value-focused investors, despite its current P/E ratio of 25.74x being above industry averages, prompting careful risk assessment.
Investors are encouraged to engage in community discussions to gain insights into the company's future developments, as brand strength and profit expectations remain promising.
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- Share Reduction Details: According to an SEC filing dated February 17, 2026, DME Capital reduced its stake in Victoria's Secret by 194,593 shares during Q4 2025, with an estimated transaction value of $7.73 million, indicating a strategy to realize profits amid rising stock prices.
- Value Change in Holdings: Despite the reduction, Victoria's Secret still represented 3.3% of DME Capital's assets, with the stake's value increasing by $41.69 million due to trading activity and price performance, reflecting the company's strong market position.
- Performance Metrics: As of February 17, 2026, shares of Victoria's Secret were priced at $60.36, marking a 93.2% increase over the past year, significantly outperforming the S&P 500 by 71.94 percentage points, showcasing robust growth in the competitive women's apparel market.
- Future Outlook: Victoria's Secret reported $1.5 billion in sales for Q3 2025, a 9% year-over-year increase, and raised its full-year guidance to $6.5 billion, indicating continued growth potential, although the current price-to-earnings ratio exceeding 30 may affect investors' buying decisions.
- Share Reduction Transaction: DME Capital sold 194,593 shares of Victoria's Secret in Q4 2025, with an estimated trade value of $7.73 million, reflecting the fund's strategy to realize profits following a stock price increase.
- Holding Value Growth: As of December 31, 2025, the value of DME Capital's stake in Victoria's Secret increased by $41.69 million, indicating the dual impact of trading activity and price performance, although the stock now represents 3.3% of the fund's assets.
- Performance Exceeds Expectations: Victoria's Secret reported $1.5 billion in sales for its fiscal Q3, a 9% year-over-year increase, and raised its full-year guidance to $6.5 billion, further driving the stock price upward.
- Market Performance Analysis: The stock price of Victoria's Secret surged by 93.2% over the past year, reaching a 52-week high of $66.89 on January 9, 2026, demonstrating its strong performance in the highly competitive women's apparel market.
- Victoria's Secret Outlook: Market strategist highlights Victoria's Secret (VSCO) as performing well in the current bullish trend, with support at $55 to $58; if it breaks through recent highs of $62 to $63, it could reach new all-time highs, indicating strong potential driven by consumer confidence and diet drugs.
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Market Reaction: Stocks experienced a rally on Friday following the Supreme Court's rejection of a key aspect of President Trump's trade policy.
Future Outlook: Despite the initial market relief, investors are advised to brace for upcoming economic uncertainties.
- New Investment Disclosure: Seldon Capital disclosed the acquisition of 155,950 shares of Victoria's Secret in Q4 2025, amounting to approximately $8.45 million, marking a new investment that reflects confidence in the brand's future growth potential.
- Significant Stake: This acquisition gives Seldon Capital a 2.92% stake in Victoria's Secret, representing a notable position within its reportable U.S. equity AUM, indicating a bullish outlook on the consumer goods sector.
- Performance Rebound: Victoria's Secret recently reported Q3 net sales of $1.472 billion, up 9% year-over-year, with management raising full-year sales guidance to $6.48 billion, showcasing strong performance amid market recovery.
- Enhanced Market Competitiveness: The company's stock price surged 93.2% over the past year, significantly outperforming the S&P 500, indicating an increasing competitive edge in the women's intimate apparel and beauty products sector, which is likely to continue attracting investor interest.
- Share Acquisition: Seldon Capital acquired 155,950 shares of Victoria's Secret in Q4 2026, valued at approximately $8.45 million, indicating confidence in the company's growth potential and market position.
- Financial Performance: Victoria's Secret reported Q3 net sales of $1.472 billion, a 9% year-over-year increase, with comparable sales up 8%, reflecting a recovery and enhanced competitiveness in the market.
- Guidance Upgrade: The management raised full-year sales guidance to $6.48 billion, with adjusted operating income expectations reaching up to $375 million, signaling improving profitability and attracting investor interest.
- Market Performance: Victoria's Secret stock surged over 90% in the past year, making it a compelling investment choice in the consumer discretionary sector despite previous challenges, highlighting its strong rebound.








