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

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Tencent Holding Ltd. (TCEHY - Free Report) closed the most recent trading day at $57.71, moving +0.54% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.17%.

Heading into today, shares of the company had lost 15.23% over the past month, lagging the Computer and Technology sector's gain of 3.5% and the S&P 500's gain of 1.84% in that time.

Investors will be hoping for strength from TCEHY as it approaches its next earnings release. In that report, analysts expect TCEHY to post earnings of $0.54 per share. This would mark year-over-year growth of 22.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.54 billion, up 32.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.25 per share and revenue of $91.51 billion, which would represent changes of +22.28% and +30.71%, respectively, from the prior year.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 1.92% lower within the past month. TCEHY is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, TCEHY currently has a Forward P/E ratio of 25.57. For comparison, its industry has an average Forward P/E of 26.93, which means TCEHY is trading at a discount to the group.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% 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.

To follow TCEHY in the coming trading sessions, be sure to utilize Zacks.com.


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