In the latest trading session, Tencent Holding (TCEHY) closed at $47.53, marking a +0.36% move from the previous day. This move outpaced the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.44%.
Prior to today's trading, shares of the company had gained 4.41% over the past month. This has lagged the Computer and Technology sector's gain of 6.51% and outpaced the S&P 500's gain of 4% in that time.
Wall Street will be looking for positivity from TCEHY as it approaches its next earnings report date. The company is expected to report EPS of $0.35, up 9.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.38 billion, up 15.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.45 per share and revenue of $57.35 billion. These totals would mark changes of +23.93% and +21.4%, 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 a result, we can interpret positive estimate revisions as a good sign for 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% lower. TCEHY is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, TCEHY is holding a Forward P/E ratio of 32.66. This valuation marks a premium compared to its industry's average Forward P/E of 29.26.
Also, we should mention that TCEHY has a PEG ratio of 1.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services industry currently had an average PEG ratio of 3.02 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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