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

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In the latest market close, Vipshop Holdings Limited (VIPS - Free Report) reached $15.44, with a -1.28% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.5%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 1.23%.

The the stock of company has risen by 4.9% in the past month, leading the Computer and Technology sector's loss of 0.1% and the S&P 500's loss of 2.4%.

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 $0.40 per share. This would mark year-over-year growth of 11.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.08 billion, up 1.39% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.15 per share and a revenue of $15.34 billion, representing changes of +38.71% and +0.37%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Vipshop Holdings Limited. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Vipshop Holdings Limited is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Vipshop Holdings Limited is currently trading at a Forward P/E ratio of 7.29. This signifies a discount in comparison to the average Forward P/E of 28.21 for its industry.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 3, finds itself in the top 2% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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