Trade-Ideas LLC identified

Vipshop Holdings

(

VIPS

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Vipshop Holdings as such a stock due to the following factors:

  • VIPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $79.9 million.
  • VIPS traded 1.1 million shares today in the pre-market hours as of 8:56 AM, representing 14.9% of its average daily volume.

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More details on VIPS:

Vipshop Holdings Limited, through its subsidiaries, operates as an online discount retailer for various brands in the People's Republic of China. VIPS has a PE ratio of 36. Currently there are 4 analysts that rate Vipshop Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Vipshop Holdings has been 8.4 million shares per day over the past 30 days. Vipshop has a market cap of $7.0 billion and is part of the services sector and retail industry. Shares are down 18.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vipshop Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • VIPS's revenue growth has slightly outpaced the industry average of 42.5%. Since the same quarter one year prior, revenues rose by 47.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • VIPSHOP HOLDINGS LTD -ADR has improved earnings per share by 22.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, VIPSHOP HOLDINGS LTD -ADR increased its bottom line by earning $0.40 versus $0.23 in the prior year. This year, the market expects an improvement in earnings ($4.52 versus $0.40).
  • The gross profit margin for VIPSHOP HOLDINGS LTD -ADR is rather low; currently it is at 24.03%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 3.59% is above that of the industry average.
  • The debt-to-equity ratio of 1.17 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, VIPS has a quick ratio of 0.51, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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