Vipshop Holdings Limited (VIPS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Vipshop Holdings Limited (VIPS) closed at $7.87, marking a -0.76% move from the previous day. This move lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1%.
Coming into today, shares of the company had lost 4.57% in the past month. In that same time, the Computer and Technology sector gained 3.84%, while the S&P 500 gained 2.68%.
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 $0.16 per share. This would mark year-over-year growth of 23.08%. Meanwhile, our latest consensus estimate is calling for revenue of $3.13 billion, down 0.13% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for VIPS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 has moved 3.57% higher. VIPS is currently a Zacks Rank #3 (Hold).
In terms of valuation, VIPS is currently trading at a Forward P/E ratio of 10.64. This represents a discount compared to its industry's average Forward P/E of 19.04.
The Internet - Delivery Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.