ipuwadol Investment Thesis Vipshop Holdings Limited ( NYSE: VIPS ) stock has gained more than 110% over the last 5 years outperforming the S&P 500 by a margin of about 25%. Seeking Alpha Despite this strong performance, I am bullish on this stock given its unique business model and market position which I believe shall be a major growth lever. Additionally, its solid financial footings imply solid fundamentals which are a recipe for stock growth.
Additionally, this stock is undervalued with a significant double-digit upside potential. Consequently, I recommend this promising stock to potential investors at a discount. Company Profile VIPS is an online platform in China known for its prominent platforms 唯品会(vip.
com)-618年中特卖节 and Vipshop.com. The company is a known player in the Chinese e-commerce market and it has carved out a niche for itself as an online discount retailer for brands.
The company is a breadline retailer offering a wide range of products ranging from clothes to cosmetics among other products . The company operates through three segments whose revenue contribution is as shown below. Market Screener The company’s success is attributable to its ability to offer special deals and deep discounts on branded products which not only attract a large customer base but also distinguish the company from traditional online retailers.
Business Model And Market Position The company’s business model is unique, the flash sale model is based on deep discount.
