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Vipshop Holdings Limited (VIPS) Outpaces Stock Market Gains: What You Should Know

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Vipshop Holdings Limited (VIPS - Free Report) closed the most recent trading day at $6.70, moving +1.52% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.3%. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.39%.

Prior to today's trading, shares of the company had lost 21.62% over the past month. This has lagged the Computer and Technology sector's loss of 4.48% and the S&P 500's loss of 4.84% in that time.

Wall Street will be looking for positivity from VIPS as it approaches its next earnings report date. The company is expected to report EPS of $0.16, up 23.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.13 billion, down 0.13% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.75 per share and revenue of $13.07 billion, which would represent changes of +29.31% and +2.94%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for VIPS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. VIPS is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, VIPS currently has a Forward P/E ratio of 8.86. This represents a discount compared to its industry's average Forward P/E of 16.94.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 15% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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