In the latest trading session, Tencent Holding Ltd. (TCEHY) closed at $37.79, marking a -1.25% move from the previous day. This change lagged the S&P 500's daily loss of 1.13%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.16%.
Prior to today's trading, shares of the company had lost 4.35% over the past month. This has was narrower than the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 7.59% in that time.
Wall Street will be looking for positivity from Tencent Holding Ltd. as it approaches its next earnings report date. The company is expected to report EPS of $0.48, down 5.88% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $21.35 billion, down 2.98% from the year-ago period.
TCEHY's full-year Zacks Consensus Estimates are calling for earnings of $1.77 per share and revenue of $84.99 billion. These results would represent year-over-year changes of -10.15% and -2.11%, respectively.
Any recent changes to analyst estimates for Tencent Holding Ltd. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 14.78% higher. Tencent Holding Ltd. is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Tencent Holding Ltd. currently has a Forward P/E ratio of 21.62. This valuation marks a premium compared to its industry's average Forward P/E of 20.73.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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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