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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Vipshop Holdings Limited (VIPS - Free Report) . VIPS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 16.18, which compares to its industry's average of 34.74. VIPS's Forward P/E has been as high as 25.38 and as low as 10.36, with a median of 14.41, all within the past year.
Another valuation metric that we should highlight is VIPS's P/B ratio of 4.52. Investors use the P/B ratio to look at a stock's market value versus 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 5.11. VIPS's P/B has been as high as 6.87 and as low as 2.55, with a median of 4.09, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VIPS has a P/S ratio of 1.44. This compares to its industry's average P/S of 2.23.
Finally, investors will want to recognize that VIPS has a P/CF ratio of 20.70. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 30.95. Within the past 12 months, VIPS's P/CF has been as high as 31.47 and as low as 12.32, with a median of 19.25.
These are just a handful of the figures considered in Vipshop Holdings Limited's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that VIPS is an impressive value stock right now.
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Vipshop Holdings Limited (VIPS - Free Report) . VIPS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 16.18, which compares to its industry's average of 34.74. VIPS's Forward P/E has been as high as 25.38 and as low as 10.36, with a median of 14.41, all within the past year.
Another valuation metric that we should highlight is VIPS's P/B ratio of 4.52. Investors use the P/B ratio to look at a stock's market value versus 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 5.11. VIPS's P/B has been as high as 6.87 and as low as 2.55, with a median of 4.09, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VIPS has a P/S ratio of 1.44. This compares to its industry's average P/S of 2.23.
Finally, investors will want to recognize that VIPS has a P/CF ratio of 20.70. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 30.95. Within the past 12 months, VIPS's P/CF has been as high as 31.47 and as low as 12.32, with a median of 19.25.
These are just a handful of the figures considered in Vipshop Holdings Limited's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that VIPS is an impressive value stock right now.