Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Vipshop Holdings ( VIPS) as a pre-market laggard 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 $308.0 million.
- VIPS traded 23,797 shares today in the pre-market hours as of 9:30 AM.
- VIPS is down 5.3% today from Friday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in VIPS with the Ticky from Trade-Ideas. See the FREE profile for VIPS NOW at Trade-Ideas 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 157.1. Currently there are 5 analysts that rate Vipshop Holdings a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Vipshop Holdings has been 1.1 million shares per day over the past 30 days. Vipshop has a market cap of $9.8 billion and is part of the services sector and retail industry. Shares are up 99% year-to-date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. 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, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Highlights from the ratings report include:
- VIPS's very impressive revenue growth greatly exceeded the industry average of 8.3%. Since the same quarter one year prior, revenues leaped by 117.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 258.33% and other important driving factors, this stock has surged by 646.35% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- VIPS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.87 is somewhat weak and could be cause for future problems.
- The gross profit margin for VIPSHOP HOLDINGS LTD -ADR is rather low; currently it is at 24.49%. Regardless of VIPS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, VIPS's net profit margin of 3.90% compares favorably to the industry average.
- You can view the full Vipshop Holdings Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.