In the latest trading session, Tencent Holding (TCEHY) closed at $44.62, marking a -0.16% move from the previous day. This change lagged the S&P 500's 1.29% gain on the day. Elsewhere, the Dow gained 1.49%, while the tech-heavy Nasdaq added 1.46%.
Prior to today's trading, shares of the company had gained 8.1% over the past month. This has outpaced the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 4.57% in that time.
Investors will be hoping for strength from TCEHY as it approaches its next earnings release. The company is expected to report EPS of $0.28, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.34 billion, up 21.4% from the year-ago period.
Investors should also note any recent changes to analyst estimates for TCEHY. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 1.62% higher. TCEHY is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, TCEHY is currently trading at a Forward P/E ratio of 32.04. Its industry sports an average Forward P/E of 26.88, so we one might conclude that TCEHY is trading at a premium comparatively.
Meanwhile, TCEHY's PEG ratio is currently 1.01. 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 was holding an average PEG ratio of 2.17 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Tencent Holding Ltd. (TCEHY): Free Stock Analysis Report
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