Vipshop Holdings Limited (VIPS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Vipshop Holdings Limited (VIPS) closed at $7.73, marking a -1.9% move from the previous day. This move lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the company had gained 30.25% over the past month. This has outpaced the Computer and Technology sector's gain of 10.66% and the S&P 500's gain of 8.17% in that time.
Wall Street will be looking for positivity from VIPS as it approaches its next earnings report date. In that report, analysts expect VIPS to post earnings of $0.19 per share. This would mark a year-over-year decline of 13.64%. Meanwhile, our latest consensus estimate is calling for revenue of $3.89 billion, up 4.87% from the prior-year quarter.
It is also important to note the 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 14% higher. VIPS is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, VIPS is currently trading at a Forward P/E ratio of 10.94. This represents a discount compared to its industry's average Forward P/E of 20.54.
The Internet - Delivery Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 18% 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.
To follow VIPS in the coming trading sessions, be sure to utilize Zacks.com.
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