Victoria's Secret Stock Rallies 261% Since August 2025, Still Trading Cheap

VSCOVSCO

Since August 2025, Victoria's Secret stock has surged from about $18 to nearly $65, representing a roughly 261% increase. The company recently qualified for our 'Fast-Paced Momentum at a Bargain' screen, highlighting strong price momentum alongside a still-reasonable valuation.

1. Rapid Momentum and Market Outperformance

Since August 2025, VSCO has surged by approximately 260%, positioning it among the top performers in the retail sector over the past six months. This rally has been driven by a 12% rise in quarterly comparable sales and a 25% jump in e-commerce revenues, as the company doubled down on digital marketing and loyalty-program initiatives. Institutional ownership has climbed to over 70%, reflecting growing confidence from large asset managers in VSCO’s ability to sustain its growth trajectory.

2. Attractive Valuation Despite Significant Gains

Even after its dramatic run, VSCO trades at just 14 times forward earnings, well below the 19-multiple average of S&P 500 apparel peers. Analysts project full-year revenue growth of 18%, supported by new store openings in key markets and deeper penetration into the plus-size segment. Free cash flow has expanded by 35% year-over-year, enabling the company to maintain a healthy dividend yield and repurchase nearly 3% of its outstanding shares during the latest quarter.

Sources

BZ