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Is Vipshop Holdings Limited (VIPS) a Great Value Stock Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Vipshop Holdings Limited (VIPS - Free Report) is a stock many investors are watching right now. VIPS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that VIPS has a P/B ratio of 2.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.86. Over the past year, VIPS's P/B has been as high as 5.68 and as low as 1.24, with a median of 2.49.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. VIPS has a P/S ratio of 0.39. This compares to its industry's average P/S of 1.04.
Finally, investors should note that VIPS has a P/CF ratio of 9.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. VIPS's current P/CF looks attractive when compared to its industry's average P/CF of 30.33. VIPS's P/CF has been as high as 25.29 and as low as 5.97, with a median of 12.03, all within the past year.
These are only a few of the key metrics included in Vipshop Holdings Limited's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VIPS looks like an impressive value stock at the moment.
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Is Vipshop Holdings Limited (VIPS) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Vipshop Holdings Limited (VIPS - Free Report) is a stock many investors are watching right now. VIPS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that VIPS has a P/B ratio of 2.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.86. Over the past year, VIPS's P/B has been as high as 5.68 and as low as 1.24, with a median of 2.49.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. VIPS has a P/S ratio of 0.39. This compares to its industry's average P/S of 1.04.
Finally, investors should note that VIPS has a P/CF ratio of 9.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. VIPS's current P/CF looks attractive when compared to its industry's average P/CF of 30.33. VIPS's P/CF has been as high as 25.29 and as low as 5.97, with a median of 12.03, all within the past year.
These are only a few of the key metrics included in Vipshop Holdings Limited's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VIPS looks like an impressive value stock at the moment.