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Vipshop Holdings Limited (VIPS) Gains As Market Dips: What You Should Know

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The latest trading session saw Vipshop Holdings Limited (VIPS - Free Report) ending at $16.06, denoting a +0.69% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 0.07%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.36%.

Heading into today, shares of the company had lost 9.07% over the past month, lagging the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 3.05% in that time.

Investors will be eagerly watching for the performance of Vipshop Holdings Limited in its upcoming earnings disclosure. On that day, Vipshop Holdings Limited is projected to report earnings of $0.74 per share, which would represent year-over-year growth of 39.62%. Simultaneously, our latest consensus estimate expects the revenue to be $4.66 billion, showing a 1.19% escalation compared to the year-ago quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for Vipshop Holdings Limited. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 2.35% lower within the past month. Vipshop Holdings Limited is holding a Zacks Rank of #4 (Sell) right now.

With respect to valuation, Vipshop Holdings Limited is currently being traded at a Forward P/E ratio of 6.3. For comparison, its industry has an average Forward P/E of 24.5, which means Vipshop Holdings Limited is trading at a discount to the group.

The Internet - Delivery Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 186, this industry ranks in the bottom 27% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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