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

Zacks Equity Research

Vipshop Holdings Limited (VIPS) closed at $7.60 in the latest trading session, marking a -1.3% move from the prior day. This change lagged the S&P 500's daily loss of 1.09%. Elsewhere, the Dow lost 1.23%, while the tech-heavy Nasdaq lost 1.19%.

Coming into today, shares of the company had lost 12.7% in the past month. In that same time, the Computer and Technology sector gained 4.47%, while the S&P 500 gained 2.62%.

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. Our most recent consensus estimate is calling for quarterly revenue of $3.13 billion, down 0.13% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.75 per share and revenue of $13.07 billion. These totals would mark changes of +29.31% and +2.94%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for VIPS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 currently has a Zacks Rank of #3 (Hold).

Digging into valuation, VIPS currently has a Forward P/E ratio of 10.34. For comparison, its industry has an average Forward P/E of 18.67, 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 221, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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