Selection for this week
Some Pros about the stock
Some Cons about the stock
Criteria for choosing
The previous selections

The momentum stocks continue to be pounded in the market and the stocks in this portfolio have not been spared from this downdraft. All the stocks in the portfolio are fast growing high momentum stocks, so I expect that when high quality momentum stocks are back in favor, these stocks will lead the way up. Meantime, I will keep adding highly ranked quality stocks with momentum to the portfolio.

Add: VSXY (Victoria’s Secret) – Apparel Retail

What does the company do?

Victoria’s Secret & Co. is a global specialty retailer of women’s lingerie, sleepwear, apparel, activewear, swimwear, beauty products, and accessories. Its brands include Victoria’s Secret, PINK, and Adore Me, with products sold through company-owned stores, e-commerce websites, and franchise and wholesale partners. Founded in 2021 as a standalone public company, Victoria’s Secret is headquartered in Reynoldsburg, Ohio.

Why Some Investors Are Bullish

• The turnaround is producing strong financial results.

Victoria’s Secret recently beat revenue and earnings expectations while raising full-year guidance. Improving sales, margins, and profitability suggest the turnaround is being driven by execution—not just marketing.

• New leadership is successfully repositioning the brand.

CEO Hillary Super has refocused the company on its core strengths while modernizing the brand. Better product execution and renewed customer engagement are helping rebuild long-term growth.

• Multiple brands provide diversified growth opportunities.

The company operates Victoria’s Secret, PINK, and Adore Me, serving different customer segments across lingerie, apparel, beauty, and digital retail. This reduces reliance on any single brand.

• Strong omnichannel business model.

Products are sold through company stores, e-commerce, and digital platforms, giving the company a balanced physical and online presence. Adore Me also strengthens its direct-to-consumer capabilities.

• Core product categories are gaining momentum.

Management’s renewed focus on bras, beauty, and other core categories has improved merchandise performance and profitability. Better execution at the product level is supporting the broader turnaround.

What Bears Are Worried About

• Valuation now reflects much of the turnaround.

After its powerful rally, investors expect continued sales growth and margin expansion. Any earnings disappointment could lead to increased share price volatility.

• Consumer spending remains the biggest external risk.

Victoria’s Secret sells discretionary products, making demand sensitive to consumer confidence, employment, and economic conditions. A weaker consumer environment could pressure sales.

• Brand repositioning still carries execution risk.

The company must continue attracting both loyal customers and new shoppers while maintaining its renewed brand identity. Sustaining recent momentum will require consistent product innovation and marketing execution.

Bottom Line

Victoria’s Secret has transformed into a profitable retail turnaround driven by stronger execution, improved products, and disciplined leadership. While the long-term outlook has improved significantly, continued execution will be essential after the stock’s substantial recovery.

Top Quant Stock of the Week Criteria

I am using a Quantitative research platform that provides a daily list of top-ranked stocks to buy or sell, based on a Comprehensive Quant Score. This Quant system uses computer algorithms to come up with its rankings. This score incorporates multiple factors, including valuation, growth, profitability, momentum, and EPS revisions.

I will be giving heavy weight to strong momentum and strong EPS revisions to make the weekly selection. Then, I will use my tested proprietary criteria to sort and then break any tie.

One stock will be selected each week. That would make 52 selections a year if I don’t miss any weeks because of internet problems.

The hold times for the stocks added will be 1 week to years. Although a 1 week hold would be rare, it could happen if the stocks Quant metrics took a big nose dive right after being selected. If an added stock maintains its good metrics, it will be kept in the portfolio until it doesn’t. No time limit. The Quant system will tell me when it is time to let it go. So the hold time is short, medium and long depending on the Quant system metrics.

All countries are included. ADR’s are ok but Pink Sheet stocks will not be allowed.

Certain Industries are excluded. My testing shows they do not perform well using Quantitative rankings. Two of the main ones are BioTechnology and Pharmacueticals.

The Remove Criteria: Once the stock no longer qualifies to be retained in the Portfolio, it will be removed. This could be because the companies metrics have deteriorated since selection, it is involved in a buyout or financial reporting problems.

Once a stock has been added to the Active list, it will not be added to. No doubling down.

The stocks considered are larger small cap, mid cap, large cap and Mega cap. They will be fairly easy to trade with opening or closing market orders as one of the ways to enter and exit positions.

It should be expected that about 50 stocks will be Active in the Portfolio in any given week, once it gets to the two year mark.

All stocks are added as equal weight. No rebalancing is to occur.

To be considered for addition, the stock has to be in the top group of Quant rankings for just several weeks. This is to allow newly upgraded stocks to qualify quickly. Hopefully, this will catch a couple of strong momentum stocks early in their move.

Once a stock is removed for cause, it can be added back in once it meets the add criteria. No waiting period is required.

There will be no limits on percentages of stocks in the Portfolio by Sector or Industry.

Previous Selections:

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated. Disclaimer