Can Vipshop Stock Keep Going After Last Week's 19% Pop?

Can Vipshop Stock Keep Going After Last Week's 19% Pop?

One of last week's biggest gainers was Vipshop Holdings (NYSE: VIPS), moving 19.4% higher without any major news behind the buying surge. The Chinese online discounter of brand-name apparel announces third-quarter results after Monday's market close, so one can argue that the shares are merely rallying ahead of the financial report. However, recent momentum and the stock's performance last time out suggest that staying on the sidelines could be the more prudent call. 

Vipshop stock plummeted 13% the week it posted its second-quarter report three months ago. Revenue rose at a reasonable 30% rate, but adjusted earnings inched a mere 8% higher as cutthroat competition ate away at its previously beefy profit margin. The stock would go on to trade in the single digits for the first time since 2012, and that's just where it remains even after last week's rally.

Image source: Vipshop Holdings.

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Source: Fool.com