For Immediate Release
Chicago, IL – July 9, 2026 – Zacks Equity Research shares Victoria’s Secret VSXY as the Bull of the Day and BellRing Brands BRBR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Cenovus Energy Inc. CVE and Par Pacific PARR.
Here is a synopsis of all four stocks.
Bull of the Day:
Victoria’s Secret, a Zacks Rank #1 (Strong Buy), has quietly become one of the most convincing turnaround stories in retail.
Once written off as a fading mall relic, the specialty retailer of intimates, apparel and beauty has strung together four consecutive quarters of positive comparable sales, expanded margins, and raised guidance — and the market has taken notice, with shares up more than 40% year to date.
The stock’s recent upgrade reflects a powerful wave of upward earnings estimate revisions, historically one of the most reliable forces driving share prices higher. Last month, the company changed its ticker from VSCO to VSXY alongside a broader brand reset under CEO Hillary Super.
Shares continue to display impressive relative strength, sharply outperforming the broader apparel-retail group. This is the kind of price action that tends to accompany a business whose fundamentals are inflecting higher.
Victoria’s Secret is part of the Zacks Retail – Apparel and Shoes industry group, which currently ranks in the top 26% out of approximately 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.
Notably, stocks in this industry are relatively undervalued, and the group carries projected earnings growth well above the S&P 500’s expected pace.
A positive earnings outlook for its constituent companies in aggregate provides a powerful foundation that should lead to higher prices in the future. Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
Victoria’s Secret & Co. is a specialty retailer of modern, fashion-inspired collections spanning signature bras and panties, lingerie, sleepwear, apparel, sport and swim, as well as award-winning prestige fragrances and body care.
The company operates through its flagship Victoria’s Secret brand, the youth-focused PINK brand, and a fast-growing Beauty business, supported by an expanding international footprint built on an asset-light model of joint ventures and partner-operated stores.
The turnaround underway is broad-based and, importantly, rooted in improved product and brand execution rather than discounting. Bras — the heart of the franchise — grew in the low double digits in the first quarter, creating a halo that lifted adjacent categories like panties and sleepwear.
PINK is resonating again with 18-to-24-year-olds, with app downloads up more than 50%, while Beauty continues to contribute. Management is also modernizing the fleet, targeting roughly 45% of global stores in its “store of the future” format by year-end, and leaning into international markets, where first-quarter sales jumped nearly 45%.
Earnings Trends and Future Estimates
The first quarter of fiscal 2026 was a standout. Net sales rose 15% to $1.56 billion, comparable sales climbed 13% — marking a fourth straight quarter of positive comps — and the company swung to net income of $47.7 million.
Crucially, the quality of the beat was high: a deliberate shift toward full-price selling and fewer promotions lifted average unit retail and expanded adjusted gross margin by 240 basis points to 37.6%, while adjusted operating income surged 153% to $80 million. The lesson is clear — selective retailers can still protect margins when the product connects.
Management responded by raising its full-year fiscal 2026 outlook, now guiding to net sales of $7.03-$7.13 billion (up from $6.85-$6.95 billion) and adjusted operating income of $550-$580 million (up from $430-$460 million).
Analysts have rushed to catch up: over the past 60 days, the Zacks Consensus Estimate for the current fiscal year has jumped from $3.49 to $4.61 per share, implying roughly 53.7% year-over-year growth, with next year’s estimate pointing to another 18.9% increase. This is exactly the kind of momentum that powers the Zacks Rank.
Let’s Get Technical
Victoria’s Secret has transformed from a broken-down laggard into one of the better momentum stories in retail. After bottoming, shares have staged a powerful recovery and continue to trend higher. This is precisely the kind of stock we want in our portfolio — one that is trending well and receiving positive earnings estimate revisions.
Notice how shares reside above upward-sloping 50-day (blue line) and 200-day (red line) moving averages, a hallmark of a healthy bull trend. With both improving fundamentals and a constructive technical picture, VSXY appears positioned to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Victoria’s Secret has recently witnessed sharp upward revisions. As long as this trend remains intact (and VSXY continues to deliver earnings beats), the stock will likely continue its bullish run.
Bottom Line
Backed by a leading industry group and a powerful history of accelerating fundamentals, it’s not difficult to see why this turnaround has captured investor attention. Currently, VSXY sports a Zacks Rank #1 (Strong Buy), driven by robust upward estimate momentum, along with a VGM Score of A.
The combination of record-quality comps, expanding margins, full-price discipline, asset-light international growth and a rising estimate trend makes for a compelling package. If you haven’t already, be sure to put Victoria’s Secret on your watchlist.
Bear of the Day:
BellRing Brands provides convenient nutrition products, best known for its Premier Protein ready-to-drink shakes and Dymatize performance powders.
The company sells its protein-centric portfolio across club, mass, e-commerce, specialty and convenience channels in the United States and internationally, positioning itself at the center of the fiercely competitive nutrition category.
For years, BellRing rode a powerful tailwind as consumers embraced high-protein diets. But that very success has attracted a flood of competition, and the company now finds itself squarely on the wrong side of a margin squeeze.
Recent results reveal a business grappling with severe input-cost inflation, heavier promotional spending, and a deceleration in demand — a punishing combination for a single-category consumer staple with limited pricing power.
The pressures are structural, not fleeting. BellRing’s gross margin is tightly tied to the dairy-protein cost cycle, and milk-protein and whey inflation is expected to persist through the back half of the fiscal year. Layer on an unfavorable price/mix, higher freight, and a contraction in household spending on ready-to-drink shakes, and the earnings outlook has deteriorated sharply.
Compounding the problem, a wave of aggressive new entrants has been promoting at what management itself has called unsustainable levels, forcing BellRing to spend more on promotions just to defend shelf space and velocities. With roughly 74% of revenue concentrated in just three retailers and a balance sheet now carrying more than $1 billion of debt, the company has little cushion. That fragility was underscored when S&P Global recently downgraded BellRing to ‘B+’ from ‘BB-’ with a negative outlook.
The Zacks Rundown
BellRing has been a notable laggard, with shares mired in a steep downtrend — down roughly 50% year to date and about 75% over the past year, even as major U.S. indexes hover near record highs. A Zacks Rank #5 (Strong Sell), BRBR’s performance reflects unfavorable earnings estimate revision trends.
Shares are part of the Zacks Food – Miscellaneous industry group, which currently ranks in the bottom 17% out of approximately 250 industries. Because this industry is ranked in the bottom half of all Zacks Ranked Industries, we expect it to underperform the market over the next 3 to 6 months, just as it has over the past year:
While individual stocks have the ability to outperform even when included in weak industries, their industry association serves as a headwind for any potential rallies. Stocks in this industry are also expected to post below-average earnings growth. With much better alternatives available in the current market environment, this stock should be avoided.
Cracks in the Foundation: Earnings Misses and Deteriorating Forecasts
BellRing’s latest quarter was a genuine shock. In its fiscal second quarter of 2026, the company posted adjusted earnings of just $0.14 per share, missing the Zacks Consensus Estimate of $0.31 by a staggering 55% and collapsing 74% from $0.53 a year earlier.
Net sales of $598.7 million grew a scant 1.8% and fell short of the consensus mark, while adjusted gross margin cratered to 22.7% from 34.5% — a jaw-dropping decline — and adjusted EBITDA was cut nearly in half to $53.8 million. A separate $11.3 million inventory-related charge, tied to a third-party ingredient that failed quality standards, added insult to injury.
The stock plunged roughly 40% on the print. Falling short of estimates by that magnitude is a recipe for underperformance, and BRBR is no exception.
Management compounded the disappointment by slashing full-year fiscal 2026 guidance, cutting the adjusted EBITDA outlook to $315-$335 million — a reduction of roughly $115 million at the midpoint — and trimming net sales growth to a range of just 0-2%.
Analysts have responded by aggressively marking down forecasts; the Zacks Consensus Estimate now points to full-year earnings of roughly $1.22 per share, implying a decline of more than 40% from the prior year. These are precisely the types of negative trends that the bears like to see.
Technical Outlook
BRBR stock has been in a well-defined and punishing downtrend. Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping lower, with shares trading well below the longer-term average.
The persistent, year-long descent has produced a classic “death cross,” wherein the 50-day moving average crosses below the 200-day moving average — a bearish technical signal that often precedes further weakness. Shares would need to mount a serious move to the upside and show improving earnings estimate revisions to warrant taking any long positions.
Final Thoughts
As a single-category consumer staple heavily exposed to the dairy-protein cost cycle and an increasingly crowded competitive field, BellRing is absorbing the full brunt of margin compression and slowing demand.
A deteriorating fundamental and technical backdrop show that this stock doesn’t deserve a spot in most portfolios right now, and its membership in one of the weaker industry groups adds yet another headwind.
With unfavorable Zacks Style Scores corroborating the bearish setup, and falling future earnings estimates likely to serve as a ceiling on any rallies, potential investors may want to give this stock the cold shoulder — or perhaps consider it as part of a short or hedge strategy.
Additional content:
2 Bargain Top-Ranked Energy Stocks that Won't Stay Cheap for Long
The oil-energy sector has seen a rally of 17.9% year to date, outperforming the Zacks S&P 500 composite’s increase of 10.4%. Geopolitical tensions in the Middle East have remained an important driver of oil prices, providing continued support to energy stocks.
Investors should note that West Texas Intermediate (“WTI”) oil is currently trading below $75 per barrel, according to data from Oilprice.com, significantly down from the more than $100 per barrel mark reached in May this year. However, renewed tensions in the Middle East, following President Donald Trump's statement that the ceasefire agreement with Iran is no longer in effect, are once again supporting oil prices.
With the strong gain in the oil-energy space, it might have been difficult to find undervalued energy stocks that could create great value for investors’ portfolios. However, employing our proprietary stock screener, we have identified two cheap stocks that may not stay undervalued once the crowd catches on. The two stocks are Cenovus Energy Inc. and Par Pacific.
Bet on 2 Cheap Energy Stocks Right Away: CVE, PARR
Cenovus Energy is an integrated energy player with a presence in upstream and downstream businesses. With core operations in Canadian oil sands and North American refining, the company’s business model is relatively stable and can withstand the volatility in oil prices.
Currently, Cenovus Energy is undervalued, with a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.28x. This is below the broader industry average of 6.45x.
Par Pacific is benefiting from a refining business that remains well-positioned in the current crude-price environment. Although geopolitical tensions have recently supported crude prices, oil remains well below the highs seen earlier this year. The current price scenario continues to provide refiners like Par Pacific with relatively attractive feedstock costs.
Instead of relying on a single source of crude, PARR has been depending on crude from a variety of sources, comprising U.S. inland oil fields, imported oil delivered by ship and Canadian heavy crude.
Notably, a significant portion of crude oil sources is waterborne, while 22% consists of Canadian heavy oil. While exposed to multiple sources, Par Pacific has the option to switch if the price of one crude oil type rises.
Additionally, having exposure to Canadian heavy oil, which is cheaper than lighter crude, Par Pacific is likely to have been enjoying a cost advantage. In other words, the refining player has been capable of using lower-priced fuel to produce high-value end products, giving it an edge over other refiners and helping it continue its upward trajectory.
Coming to the valuation story, PARR is currently trading at a discount. The stock is trading at a trailing 12-month EV/EBITDA multiple of 4.84x, which is lower than the broader industry average of 5.50x.
Last Words
Given their discounted valuations and favorable industry positioning, both Cenovus Energy and Par Pacific appear well-positioned to gain. Both stocks sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Cenovus Energy Inc (CVE): Free Stock Analysis Report
Par Pacific Holdings, Inc. (PARR): Free Stock Analysis Report
BellRing Brands Inc. (BRBR): Free Stock Analysis Report
Victoria's Secret & Co. (VSXY): Free Stock Analysis Report
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