Tencent Holding Ltd. (TCEHY) closed at $35.70 in the latest trading session, marking a -0.61% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Prior to today's trading, shares of the company had lost 10.45% over the past month. This has was narrower than the Computer and Technology sector's loss of 13.48% and lagged the S&P 500's loss of 10.24% in that time.
Tencent Holding Ltd. will be looking to display strength as it nears its next earnings release. On that day, Tencent Holding Ltd. is projected to report earnings of $0.48 per share, which would represent a year-over-year decline of 5.88%. Meanwhile, our latest consensus estimate is calling for revenue of $21.35 billion, down 2.98% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.77 per share and revenue of $84.99 billion. These totals would mark changes of -10.15% and -2.11%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Tencent Holding Ltd.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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Tencent Holding Ltd. currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Tencent Holding Ltd. is currently trading at a Forward P/E ratio of 20.29. This valuation marks a premium compared to its industry's average Forward P/E of 20.26.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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