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Vipshop Holdings Limited (VIPS) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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The latest trading session saw Vipshop Holdings Limited (VIPS - Free Report) ending at $14.98, denoting a -0.4% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.34%. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.33%.

The company's stock has dropped by 14.11% in the past month, falling short of the Computer and Technology sector's loss of 4.23% and the S&P 500's loss of 4.05%.

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 $0.59 per share, which would represent year-over-year growth of 15.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.87 billion, down 3.41% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.54 per share and a revenue of $16.45 billion, indicating changes of +6.72% and +3.72%, respectively, from the former year.

Investors should also note any recent changes 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.44% lower. Vipshop Holdings Limited is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Vipshop Holdings Limited has a Forward P/E ratio of 5.92 right now. For comparison, its industry has an average Forward P/E of 25.71, 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. At present, this industry carries a Zacks Industry Rank of 56, placing it within the top 23% of over 250 industries.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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