Vipshop Holdings Limited (VIPS) Suffers a Larger Drop Than the General Market: Key Insights

VIPS

In the latest market close, Vipshop Holdings Limited (VIPS - Free Report) reached $17.27, with a -1.2% movement compared to the previous day. This change lagged the S&P 500's 0.34% loss on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.56%.

The company's shares have seen an increase of 14.55% over the last month, surpassing the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 2.56%.

The upcoming earnings release of Vipshop Holdings Limited will be of great interest to investors. In that report, analysts expect Vipshop Holdings Limited to post earnings of $0.74 per share. This would mark year-over-year growth of 39.62%. Meanwhile, our latest consensus estimate is calling for revenue of $4.67 billion, up 1.34% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Vipshop Holdings Limited. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Vipshop Holdings Limited holds a Zacks Rank of #3 (Hold).

Digging into valuation, Vipshop Holdings Limited currently has a Forward P/E ratio of 6.79. This valuation marks a discount compared to its industry's average Forward P/E of 22.92.

The Internet - Delivery Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 39% of all industries, numbering over 250.

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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