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

In the latest trading session, Vipshop Holdings Limited (VIPS) closed at $30.77, marking a -0.74% move from the previous day. This change lagged the S&P 500's 0.72% loss on the day.

Prior to today's trading, shares of the company had gained 2.85% over the past month. This has lagged the Computer and Technology sector's gain of 11.47% and the S&P 500's gain of 6.13% in that time.

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 $0.37, up 85% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.29 billion, up 61.63% from the prior-year quarter.

VIPS's full-year Zacks Consensus Estimates are calling for earnings of $1.76 per share and revenue of $19.06 billion. These results would represent year-over-year changes of +26.62% and +27.4%, respectively.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. VIPS is currently a Zacks Rank #3 (Hold).

In terms of valuation, VIPS is currently trading at a Forward P/E ratio of 17.66. Its industry sports an average Forward P/E of 58.7, so we one might conclude that VIPS is trading at a discount comparatively.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% 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.


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