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Here's Why Vipshop Holdings Limited (VIPS) Fell More Than Broader Market

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The latest trading session saw Vipshop Holdings Limited (VIPS - Free Report) ending at $17.15, denoting a -1.83% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 1.23%. Elsewhere, the Dow saw a downswing of 1.36%, while the tech-heavy Nasdaq depreciated by 1.4%.

Prior to today's trading, shares of the company had lost 1.58% over the past month. This has lagged the Computer and Technology sector's gain of 2.32% and the S&P 500's gain of 1.61% in that time.

The investment community will be closely monitoring the performance of Vipshop Holdings Limited in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.60, reflecting a 17.65% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.85 billion, down 3.95% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.55 per share and revenue of $16.51 billion. These totals would mark changes of +7.14% and +4.13%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Vipshop Holdings Limited. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.45% increase. Vipshop Holdings Limited currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Vipshop Holdings Limited is presently being traded at a Forward P/E ratio of 6.85. This expresses a discount compared to the average Forward P/E of 26.16 of its industry.

The Internet - Delivery Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 7, positioning it in the top 3% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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