| Stock (Symbol) | Stock Price | |
Vipshop (VIPS) |
$25 |
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| Data is as of | Expected to Report | Sector |
February 27, 2015 |
May 12 – May 18 |
Retail & Travel |
| Sharek’s Take | ||
 Vipshop keeps the momentum going with an excellent quarter. The Chinese online flash-sale discount retailer put out 140% profit growth last qtr, breezing past the estimate of 80%, as sales jumped 109%. The stock gapped up to (just barely) an All Time high on the news but hasn’t gone anywhere since. Last qtr I said VIPS is “Not So Perfect Anymore” as the company invested extra $ into mobile, but now mobile sales accelerated from 53% of sales to 66%. Everything was so good I this qtr bumped VIPS up to the #1 spot in my Power Rankings. The company continues to put out triple digit profit growth — with an estimated long-term growth rate of 88% — and has a P/E of just 47, way down from 73 just two qtrs ago. Vipshop is also undervalued, with 28% upside to its 2015 Fair Value and 99% upside to 2016’s. This stock is currently my largest holding. |
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| One-Year Chart | ||
 You can see the gap up on the right side of the one-year chart. Chinese Internet stocks were oddly weak last year after a record-setting 2013. Now the stocks are moving up again. Look at Estimates of 83% and 71% profit growth ahead. VIPS could continue its triple-digit profit growth for two qtrs or longer. |
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| Earnings Table | ||
 Sales growth of 109% and profit growth of 140%. Wow. Premier growth stock.What really impressed me is VIPS beat the 9 cents estimate by 3 cents, that’s a large % beat. It had been beating by 1 cent. Annual Profit Estimates only increased a little bit, but we haven’t gotten into 2015 yet (2014 Q4 just announced). Quarterly estimates continue to impress. VIPS could keep doubling profits this year too. |
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| Fair Value | ||
 I feel my 60 P/E is modest considering the P/E was around 70 last year. So right now this $25 stock is worth $32 but I see it being $50 next year. |
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| Ten-Year Chart | ||
 In 2014 Q3 I thought this stock was extended. Then it based a big and now its broken out again. VIPS maybe needed a rest last year. Maybe now it goes on another tear. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
1 of 24 |
Vipshop is probably the best retailer in the world right now. The estimated long-term growth rate is a staggering 88% — per year. Stunning to me this name is still undervalued. VIPS is ranked 1st of 24 stocks in the Growth Portfolio Power Rankings and 2nd of 12 stocks in the Aggressive Growth Portfolio Power Rankings with only YY being higher. |
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Aggressive Growth Portfolio
2 of 12 |
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