Back to top

Image: Bigstock

Vipshop Holdings Limited (VIPS) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, Vipshop Holdings Limited (VIPS - Free Report) closed at $7.08, marking a +0.57% move from the previous day. The stock lagged the S&P 500's daily gain of 1.63%. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 0.3%.

Coming into today, shares of the company had lost 24.38% in the past month. In that same time, the Computer and Technology sector gained 0.92%, while the S&P 500 gained 2.94%.

Investors will be hoping for strength from Vipshop Holdings Limited as it approaches its next earnings release. On that day, Vipshop Holdings Limited is projected to report earnings of $0.26 per share, which would represent year-over-year growth of 13.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.25 billion, down 16.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.30 per share and revenue of $14.85 billion, which would represent changes of -4.41% and -18.16%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Vipshop Holdings Limited. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.81% lower within the past month. Vipshop Holdings Limited is currently a Zacks Rank #4 (Sell).

Looking at its valuation, Vipshop Holdings Limited is holding a Forward P/E ratio of 5.44. This represents a discount compared to its industry's average Forward P/E of 35.1.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow VIPS in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Vipshop Holdings Limited (VIPS) - free report >>

Published in