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Why Vipshop Holdings Limited (VIPS) Dipped More Than Broader Market Today

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Vipshop Holdings Limited (VIPS - Free Report) closed the most recent trading day at $15.15, moving -1.17% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq lost 0.52%.

Coming into today, shares of the company had lost 13.73% in the past month. In that same time, the Computer and Technology sector lost 1.64%, while the S&P 500 lost 1.66%.

Analysts and investors alike will be keeping a close eye on the performance of Vipshop Holdings Limited in its upcoming earnings disclosure. On that day, Vipshop Holdings Limited is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 17.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.85 billion, down 3.95% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.55 per share and revenue of $16.51 billion, indicating changes of +7.14% and +4.13%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Vipshop Holdings Limited. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.45% increase. As of now, Vipshop Holdings Limited holds a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Vipshop Holdings Limited is currently being traded at a Forward P/E ratio of 6.01. This valuation marks a discount compared to its industry's average Forward P/E of 25.71.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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