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Are Investors Undervaluing Vipshop Holdings Limited (VIPS) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Vipshop Holdings Limited (VIPS - Free Report) . VIPS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We should also highlight that VIPS has a P/B ratio of 1.45. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. VIPS's current P/B looks attractive when compared to its industry's average P/B of 4.31. Within the past 52 weeks, VIPS's P/B has been as high as 5.68 and as low as 1.24, with a median of 2.95.

Finally, we should also recognize that VIPS has a P/CF ratio of 7. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. VIPS's current P/CF looks attractive when compared to its industry's average P/CF of 26.92. Over the past 52 weeks, VIPS's P/CF has been as high as 25.29 and as low as 5.97, with a median of 14.24.

These are just a handful of the figures considered in Vipshop Holdings Limited's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that VIPS is an impressive value stock right now.




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