In the latest trading session, Tencent Holding (TCEHY) closed at $48.61, marking a -0.12% move from the previous day. This move lagged the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq gained 0.19%.
Coming into today, shares of the company had gained 9.49% in the past month. In that same time, the Computer and Technology sector gained 5.46%, while the S&P 500 gained 3.84%.
TCEHY will be looking to display strength as it nears its nex t earnings release. On that day, TCEHY is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 13.33%. Meanwhile, our latest consensus estimate is calling for revenue of $13.30 billion, up 15.08% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.46 per share and revenue of $59.81 billion. These totals would mark changes of +24.79% and +26.6%, respectively, from last year.
Any recent changes to analyst estimates for TCEHY should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.41% higher. TCEHY is currently a Zacks Rank #3 (Hold).
Investors should also note TCEHY's current valuation metrics, including its Forward P/E ratio of 33.26. Its industry sports an average Forward P/E of 25.53, so we one might conclude that TCEHY is trading at a premium comparatively.
Investors should also note that TCEHY has a PEG ratio of 1.33 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TCEHY's industry had an average PEG ratio of 3.05 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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