Victoria's Secret: Upside Potential For Short- To Mid-Term

LEL Investment LLC
1.7K Followers

Summary

  • Greenlight Capital liquidated its holdings in VSCO in Q1 2023, and VSCO's stock had declined 45% from a year ago.
  • VSCO's underperformance in 2022 led to a stressed valuation, with declining revenue, gross margin, and operating income and a lack of pricing power compared to some competitors.
  • Overall, while cautious about the company's long-term outlook, there is optimism for short- to mid-term returns, leading to a "Buy" rating for VSCO's stock.

Victoria"s Secret x Naomi Osaka

Presley Ann/Getty Images Entertainment

Greenlight threw the towel

Hedge fund manager David Einhorn's Greenlight Capital built its position in Victoria's Secret & Co. (NYSE:VSCO) in Q4 2021. The hedge fund decided to exit its holdings in Victoria's Secret in

This article was written by

1.7K Followers
Our mission is to help investors to grow their fortune and enjoy investing along the way. Our approach is investing in companies making a difference and creating phenomenon value for human societies. We hedge our portfolio with short positions on companies failing to take care of their customers and utilize resources economically.In this way, we are confident to help our investors achieve sustainable and long-term financial success. Associated with Twenty Alpha.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of VSCO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About VSCO Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on VSCO

Related Stocks

SymbolLast Price% Chg
VSCO
--