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

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Vipshop Holdings Limited (VIPS - Free Report) closed at $14.98 in the latest trading session, marking a -0.99% move from the prior day. This move lagged the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 0.81%.

Heading into today, shares of the company had gained 10.12% over the past month, outpacing the Computer and Technology sector's gain of 6.02% and the S&P 500's gain of 3.55% in that time.

Investors will be hoping for strength from VIPS as it approaches its next earnings release. On that day, VIPS is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 63.16%. Our most recent consensus estimate is calling for quarterly revenue of $3.97 billion, up 4.54% from the year-ago period.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 has moved 2.03% higher. VIPS is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that VIPS has a Forward P/E ratio of 12.5 right now. This valuation marks a discount compared to its industry's average Forward P/E of 22.78.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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.

To follow VIPS in the coming trading sessions, be sure to utilize Zacks.com.


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