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Strength Seen in Vipshop (VIPS): Can Its 7.2% Jump Turn into More Strength?

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Vipshop Holdings Limited (VIPS - Free Report) shares ended the last trading session 7.2% higher at $16.06. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 14.3% loss over the past four weeks.

Vipshop extended its rally, driven by the solid execution of its merchandising strategy. Further, the company’s deepening focus on high-margin apparel-related businesses, especially the discount apparel business, remains a positive.

This company is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of +15.7%. Revenues are expected to be $3.87 billion, down 3.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Vipshop, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on VIPS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Vipshop is a member of the Zacks Internet - Delivery Services industry. One other stock in the same industry, MakeMyTrip (MMYT - Free Report) , finished the last trading session 4.4% higher at $70.47. MMYT has returned -6.3% over the past month.

For MakeMyTrip, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.24. This represents a change of +14.3% from what the company reported a year ago. MakeMyTrip currently has a Zacks Rank of #2 (Buy).

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