Yahoo Finance What Are Analysts Saying About Vipshop Holdings Limited’s (NYSE:VIPS) Growth?
After Vipshop Holdings Limited’s (NYSE:VIPS) earnings announcement in June 2018, it seems that analyst expectations are fairly bearish, with earnings expected to grow by 1.4% in the upcoming year against the higher past 5-year average growth rate of 33%. Currently with trailing-twelve-month earnings of CN¥2.2b, we can expect this to reach CN¥2.3b by 2019. Below is a brief commentary on the longer term outlook the market has for Vipshop Holdings. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for Vipshop Holdings
How is Vipshop Holdings going to perform in the near future?
Longer term expectations from the 23 analysts covering VIPS’s stock is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of VIPS’s earnings growth over these next few years.
This results in an annual growth rate of 23% based on the most recent earnings level of CN¥1.9b to the final forecast of CN¥3.4b by 2021. This leads to an EPS of CN¥4.71 in the final year of projections relative to the current EPS of CN¥3.32. The bottom-line growth seems to be caused by cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. Margins is currently sitting at 2.7%, which is expected to expand to 3.3% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Vipshop Holdings, I’ve compiled three fundamental factors you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Vipshop Holdings worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Vipshop Holdings is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Vipshop Holdings? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
