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

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Vipshop Holdings Limited (VIPS - Free Report) closed at $8.45 in the latest trading session, marking a +1.44% move from the prior day. This move outpaced the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, added 0.97%.

Prior to today's trading, shares of the company had gained 6.52% over the past month. This has outpaced the Computer and Technology sector's loss of 2.6% and the S&P 500's loss of 1.68% in that time.

Investors will be hoping for strength from VIPS as it approaches its next earnings release, which is expected to be May 22, 2019. On that day, VIPS is projected to report earnings of $0.17 per share, which would represent no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $3.03 billion, down 4.28% from the year-ago period.

VIPS's full-year Zacks Consensus Estimates are calling for earnings of $0.75 per share and revenue of $13.17 billion. These results would represent year-over-year changes of +29.31% and +3.79%, respectively.

It is also important to note the recent changes to analyst estimates for VIPS. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 remained stagnant within the past month. VIPS currently has a Zacks Rank of #2 (Buy).

In terms of valuation, VIPS is currently trading at a Forward P/E ratio of 11.18. For comparison, its industry has an average Forward P/E of 18.82, which means VIPS is trading at a discount to the group.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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