Victoria's Secret and Flower Foods have been highlighted as Zacks Bull and Bear of the Day

Zacks named Victoria’s Secret & Co. (VSCO) its Bull of the Day, elevating it to a Zacks Rank #1 after analysts raised EPS estimates over the past 60 days (consensus current-year from $2.01 to $2.38 and next-year from $2.08 to $2.50) as the company tightens inventory, improves margins and refines its merchandise strategy; Flowers Foods (FLO) is the Bear of the Day with a Zacks Rank #5 after downward estimate revisions (current-year down a penny; next-year from $1.08 to $1.01) amid margin pressure, weak top-line growth and rising private-label competition. The Federal Reserve cut rates 25 bps to 3.50–3.75% with three dissents and will begin $40bn in Treasury bill purchases to maintain ample reserves, a dovish-leaning move that spurred a broad market rally (Dow +497, Russell 2000 new high) and pushed yields lower. In after-hours earnings, Oracle beat on EPS ($2.26 vs $1.63) but slightly missed revenue and traded down ~3.8%; Adobe beat and raised guidance (EPS $5.50 vs $5.39; revs $6.19B) and was up ~1%; Synopsys beat (EPS $2.90; revs $2.26B), reported an $11.4bn backlog and rallied about 5.5%.

Analysis

Zacks has named Victoria’s Secret & Co. (VSCO) its Bull of the Day and assigned a Zacks Rank #1 after four analysts raised estimates in the past 60 days; Zacks Consensus EPS rose from $2.01 to $2.38 for the current year and from $2.08 to $2.50 for next year, driven by inventory discipline, margin improvement and sharper merchandising. The research note emphasizes accelerating fundamentals rather than valuation alone and highlights a disconnect between upbeat earnings revisions and share price, implying potential upside if execution continues.

Flowers Foods (FLO) is singled out as the Bear of the Day with a Zacks Rank #5 following multiple downward revisions (next-year EPS cut from $1.08 to $1.01 and a small current-year downgrade), as the company faces margin compression, waning pricing power, accelerating promotional intensity and little growth catalyst; the Food – Miscellaneous industry sits in the bottom 19% of Zacks’ industry ranks, underscoring sector headwinds.

Macro and earnings context reinforced a risk-on tone after the Fed’s 25 bps cut to 3.50–3.75% (three dissents) and an unexpectedly large $40bn T-bill purchase program, which coincided with a broad market rally (Dow +497, S&P +46, Russell new high) and lower yields; notable post-close results show Oracle beat EPS ($2.26 vs $1.63) but traded down, Adobe beat and raised guidance (EPS $5.50, revs $6.19B), and Synopsys beat with an $11.4B backlog, suggesting selectivity toward companies showing durable demand and AI/cloud exposure.

Key Decisions for Investors

• Consider a selective long or add-to position in VSCO given the Zacks Rank #1, four upward analyst revisions and meaningful consensus EPS upgrades (current-year $2.01→$2.38; next-year $2.08→$2.50), but monitor execution on inventory and margin metrics for confirmation
• Reduce exposure to or hedge Flowers Foods (FLO) because of the Zacks Rank #5, downward estimate revisions (next-year $1.08→$1.01), margin pressure and lack of a clear growth catalyst
• Tactically overweight names with demonstrated AI/cloud/backlog strength (e.g., Adobe, Synopsys) after recent beats and guidance lifts, while treating Oracle’s after-hours decline despite an EPS beat as a reminder to wait for management commentary on RPO margins and forward guidance
• Use the Fed-triggered risk-on backdrop cautiously: track the 2‑yr/10‑yr spread (60 bps) and the Fed’s $40bn T‑bill purchases as signals to adjust duration and liquidity exposure and to scale positions rather than lever up