Can Vipshop Stock Keep Going After Last Week's 12% Pop?

Can Vipshop Stock Keep Going After Last Week's 12% Pop?

Just when it seems as if Vipshop Holdings (NYSE: VIPS) is starting to lose its winning touch, the Chinese fashion discounter finds a way to get back in vogue. Shares of Vipshop moved 12.2% higher last week, an impressive feat after kicking things off last Monday by hitting a three-year low.

There was no company-specific news triggering the rally that thrust it back into the double digits after a brief dip below $10 earlier in the week. Momentum plays a major role in Vipshop's moves. The stock moved higher in each of the first four months of 2017, only to give back most of those gains after double-digit percentage declines in May and June. Vipshop stock had dropped in four of the five weeks -- and six of the past eight -- before last week's recovery. Vipshop carries a one-year beta of 2.07, making it roughly twice as volatile as the S&P 500.

Image source: Vipshop Holdings.

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Source: Fool.com