NYSE-listed Victoria's Secret & Co. (NYSE:VSCO) led the pack of gainers on the exchange today, following a substantial price increase. The company traded at a lower price compared to its industry peers, as indicated by the price multiple model analysis.
The firm's price-to-earnings ratio was reported at 7.42x, which is significantly below the industry average of 12.36x. This lower ratio suggests that Victoria's Secret shares are currently cheaper compared to other companies in the same sector.
On another note, the company has a high beta, which indicates a potential for exaggerated share price movements relative to the broader market. This characteristic could present a buying opportunity in a bearish market scenario, where investors are looking for stocks with high volatility.
However, investors should also consider the projected negative earnings growth of -7.7% for Victoria's Secret. This projection introduces an element of uncertainty and risk, as it suggests that the company may not be able to maintain its current earnings level in the future. This information is crucial for investors who base their decisions on earnings growth and potential future profitability.
InvestingPro Insights
In line with the InvestingPro Tips, it's noteworthy to mention that Victoria's Secret & Co. (NYSE:VSCO) management has been aggressively buying back shares, indicating their confidence in the company's future. Furthermore, despite a declining trend in earnings per share, the stock has shown a significant return over the last week and is trading at a low earnings multiple.
From the InvestingPro Data, the firm's market cap stands at 1450M USD, with a P/E ratio of 7.39, which is lower than the previously mentioned 7.42x. This further emphasizes the lower valuation of the company compared to its industry peers. The company's revenue for the last twelve months as of Q2 2024 is 6173M USD, with a declining growth rate of -6.78%.
These insights are part of a larger collection of tips and data available on InvestingPro. For more comprehensive and up-to-date insights, consider exploring the InvestingPro platform.
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