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Tencent Music Entertainment Group Sponsored ADR (TME) Stock Moves -0.33%: What You Should Know

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Tencent Music Entertainment Group Sponsored ADR (TME - Free Report) closed the most recent trading day at $15.18, moving -0.33% from the previous trading session. This change was narrower than the S&P 500's 0.87% loss on the day.

Prior to today's trading, shares of the company had lost 15.53% over the past month. This has lagged the Computer and Technology sector's gain of 3.59% and the S&P 500's gain of 1.61% in that time.

Investors will be hoping for strength from TME as it approaches its next earnings release, which is expected to be May 17, 2021. The company is expected to report EPS of $0.11, up 22.22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.19 billion, up 33.49% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.45 per share and revenue of $5.35 billion, which would represent changes of 0% and +25.35%, respectively, from the prior year.

Any recent changes to analyst estimates for TME should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 4.65% lower within the past month. TME is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, TME currently has a Forward P/E ratio of 33.69. For comparison, its industry has an average Forward P/E of 28.26, which means TME is trading at a premium to the group.

Investors should also note that TME has a PEG ratio of 2.1 right now. 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 - Content industry currently had an average PEG ratio of 2.13 as of yesterday's close.

The Internet - Content industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 8% 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.

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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