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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 the most recent trading day at $16.67, moving -1.1% from the previous trading session. This move lagged the S&P 500's daily gain of 3.15%. At the same time, the Dow added 3.85%, and the tech-heavy Nasdaq gained 2.44%.

Coming into today, shares of the company had lost 10.37% in the past month. In that same time, the Computer and Technology sector gained 5.44%, while the S&P 500 gained 0.38%.

VIPS will be looking to display strength as it nears its next earnings release. In that report, analysts expect VIPS to post earnings of $0.09 per share. This would mark a year-over-year decline of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $2.50 billion, down 21.31% from the prior-year quarter.

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.

Any recent changes to analyst estimates for VIPS should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. VIPS is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that VIPS has a Forward P/E ratio of 13.52 right now. This represents a discount compared to its industry's average Forward P/E of 17.36.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.

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