Why Vipshop Holdings Ltd. Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Vipshop Holdings  (NYSE: VIPS  ) were moving higher once again today, gaining as much as 13% and finishing up 11% after an analyst upgrade.

So what: Credit Suisse lifted its rating on the Chinese online retailer to "outperform" from "neutral" and raised its price target to $178 from $145. The Swiss bank said Vipshop was a stable company in a volatile sector and believed growth in cosmetics and baby products would be particularly strong this year. 

Now what: Vipshop has blown out the broader market over the past year as shares have climbed more than 400% on excitement about the potential of China's booming middle class. After a recent spike, shares had fallen off in the past month with the momentum sell-off, but the Credit Suisse upgrade seems to have stopped the bleeding. Vipshop has beaten earnings estimates solidly in each of its past four quarters on the strength of its flash sales model, which give shoppers deep discounts in exchange for memberships. With sales growing by triple digits, the sky looks like the limit for Vipshop. I'd expect shares to keep moving higher as long as the company continues to beat estimates.

3 stocks poised to be multibaggers
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multibagger stocks time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2907935, ~/Articles/ArticleHandler.aspx, 11/27/2014 1:48:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 17,827.75 12.81 0.07%
S&P 500 2,072.83 5.80 0.28%
NASD 4,787.32 29.07 0.61%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

11/26/2014 4:04 PM
VIPS $22.94 Up +0.96 +4.37%
VIPSHOP HLDGS LTD… CAPS Rating: ***

Advertisement