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Vipshop Holdings Limited (VIPS) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Vipshop Holdings Limited (VIPS - Free Report) closed at $7.26, marking a +1.97% move from the previous day. This move outpaced the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq gained 0.71%.

Coming into today, shares of the company had gained 4.55% in the past month. In that same time, the Computer and Technology sector gained 2.41%, while the S&P 500 gained 0.28%.

VIPS will be looking to display strength as it nears its next earnings release. On that day, VIPS is projected to report earnings of $0.17 per share, which would represent no growth from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3 billion, down 5.19% from the year-ago period.

VIPS's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $13.10 billion. These results would represent year-over-year changes of +24.14% and +3.21%, respectively.

Investors should also note any recent changes to analyst estimates for VIPS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. VIPS is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that VIPS has a Forward P/E ratio of 9.96 right now. This represents a discount compared to its industry's average Forward P/E of 15.44.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 244, putting it in the bottom 5% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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