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Tencent Holding Ltd. (TCEHY) Outpaces Stock Market Gains: What You Should Know

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Zacks Equity Research
·2 min read
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In the latest trading session, Tencent Holding Ltd. (TCEHY) closed at $95.39, marking a +1.48% move from the previous day. This move outpaced the S&P 500's daily gain of 1.09%. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 1.23%.

Investors will be hoping for strength from TCEHY as it approaches its next earnings release. The company is expected to report EPS of $0.50, up 31.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.51 billion, up 29.93% from the year-ago period.

Investors might also notice recent changes to analyst estimates for TCEHY. 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 0.46% higher. TCEHY is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that TCEHY has a Forward P/E ratio of 39.41 right now. This valuation marks a premium compared to its industry's average Forward P/E of 38.44.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 128, putting it in the top 50% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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