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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 the most recent trading day at $8.27, moving +1.97% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.96%. Meanwhile, the Dow gained 1.31%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Prior to today's trading, shares of the company had lost 4.59% over the past month. This has was narrower than the Computer and Technology sector's loss of 7.82% and lagged the S&P 500's loss of 0.41% in that time.

Investors will be hoping for strength from Vipshop Holdings Limited as it approaches its next earnings release. The company is expected to report EPS of $0.27, up 17.39% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.25 billion, down 16.01% from the prior-year quarter.

VIPS's full-year Zacks Consensus Estimates are calling for earnings of $1.29 per share and revenue of $14.8 billion. These results would represent year-over-year changes of -5.15% and -18.42%, respectively.

It is also important to note the recent changes to analyst estimates for Vipshop Holdings Limited. Recent revisions tend to reflect the latest near-term business trends. 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 has moved 0.44% lower. Vipshop Holdings Limited is currently a Zacks Rank #4 (Sell).

Digging into valuation, Vipshop Holdings Limited currently has a Forward P/E ratio of 6.29. This represents a discount compared to its industry's average Forward P/E of 40.96.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow VIPS in the coming trading sessions, be sure to utilize Zacks.com.


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