I’m trying not to get too excited about this market rallying right now but frankly, I’m a very excitable guy. Flying high on Wednesday’s Cubs win over the Pirates then you throw in a market that’s responding so well to the Fed minutes, I’m bouncing off the walls. Risk-on is the name of the game for me right now and what could be more risk-on than a Chinese internet retail stock?
Today’s Bull of the Day is VIPshop Holdings (VIPS - Snapshot Report). Vipshop Holdings Ltd. is an online discount retailer for brands. The Company offers branded products to consumers in China through flash sales on its vipshop.com website. It offers a wide selection of various famous branded discount products including apparel for women, men and children, fashion goods, cosmetics, home goods and other lifestyle products, through its website.
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This Zacks Rank #1 (Strong Buy) also has a Growth Style Score “A.” There are two major factors leading to the favorable Zacks Rank. First is the recent bullish earnings estimate revisions coming from analysts. Over the last sixty days, two analysts have jacked up their estimates for the current year and next year. The revisions have pushed consensus up from 49 cents to 52 cents for the current year and up from 76 cents to 81 cents for next year. The other big reason is the recent string of earnings beats. VIPshop has beat consensus estimates every quarter for the last five quarters in a row.
The bullish attitude on Wall Street has boosted the stock price recently. After selling off aggressively on the heels of some bad news in the Far East, shares plummeted from over $30 to under $15. At $15 the buyers began to step back in and send the stock higher. Since the end of September the bounce has taken shares from $16 to nearly $20. There is some resistance at $20 but the next major hurdle at $22 is a more likely price target in the intermediate term.
Be sure to click FOLLOW THE AUTHOR above to stay on top of all the hot momentum stocks at Zacks.com. David Bartosiak is the Momentum Stock Strategist with Zacks, editor of the Momentum Trader and Home Run Investor, and host of “Trending Stocks”