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Vipshop Holdings Limited (VIPS) Dips More Than Broader Markets: What You Should Know

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Vipshop Holdings Limited (VIPS - Free Report) closed the most recent trading day at $11.60, moving -0.51% from the previous trading session. This change lagged the S&P 500's 0.12% loss on the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.02%.

Prior to today's trading, shares of the company had gained 28.7% over the past month. This has outpaced the Computer and Technology sector's gain of 5.66% and the S&P 500's gain of 4.42% in that time.

VIPS will be looking to display strength as it nears its next earnings release. On that day, VIPS is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 63.64%. Our most recent consensus estimate is calling for quarterly revenue of $2.65 billion, up 2.18% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.81 per share and revenue of $12.92 billion, which would represent changes of +39.66% and +1.83%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for VIPS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. VIPS is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note VIPS's current valuation metrics, including its Forward P/E ratio of 14.34. For comparison, its industry has an average Forward P/E of 17.76, which means VIPS is trading at a discount to the group.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 244, putting it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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