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Strength Seen in Vipshop Holdings Limited (VIPS): Can Its 8.6% Jump Turn into More Strength?

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Vipshop Holdings Limited (VIPS - Free Report) shares rallied 8.6% in the last trading session to close at $30.93. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 26.5% loss over the past four weeks.

Vipshop extended its rally, driven by its latest $500 million share buyback plan. With this, the company will get an opportunity to capitalize on the recent Archegos dip. Additionally, Citigroup has reiterated ‘Buy’ rating on the company which is instilling investor optimism in the stock further.

Price and Consensus

Price Consensus Chart for VIPS

This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +80%. Revenues are expected to be $4.24 billion, up 59.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Vipshop Holdings Limited, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on VIPS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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