Back to top

Image: Bigstock

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

Read MoreHide Full Article

Vipshop Holdings Limited (VIPS - Free Report) closed at $15.16 in the latest trading session, marking a +1.4% move from the prior day. This move outpaced the S&P 500's daily gain of 0.9%. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 1.13%.

Coming into today, shares of the company had lost 5.26% in the past month. In that same time, the Computer and Technology sector gained 17.65%, while the S&P 500 gained 14.3%.

VIPS will be looking to display strength as it nears its next earnings release. On that day, VIPS is projected to report earnings of $0.09 per share, which would represent a year-over-year decline of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.50 billion, down 21.31% from the year-ago period.

VIPS's full-year Zacks Consensus Estimates are calling for earnings of $1.25 per share and revenue of $13.52 billion. These results would represent year-over-year changes of +17.92% and +0.59%, respectively.

It is also important to note the recent changes to analyst estimates for VIPS. Recent revisions tend to reflect the latest near-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. VIPS is currently a Zacks Rank #2 (Buy).

Investors should also note VIPS's current valuation metrics, including its Forward P/E ratio of 11.99. For comparison, its industry has an average Forward P/E of 15.51, 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 industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Vipshop Holdings Limited (VIPS) - free report >>

Published in