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Tencent Holding (TCEHY) Stock Moves -1.69%: What You Should Know

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In the latest trading session, Tencent Holding (TCEHY - Free Report) closed at $40.84, marking a -1.69% move from the previous day. This change lagged the S&P 500's 0% on the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.06%.

Prior to today's trading, shares of the company had lost 3.35% over the past month. This has lagged the Computer and Technology sector's loss of 0.1% and the S&P 500's gain of 0.78% in that time.

Investors will be hoping for strength from TCEHY as it approaches its next earnings release, which is expected to be November 21, 2018. The company is expected to report EPS of $0.31, up 19.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.23 billion, up 25.1% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.21 per share and revenue of $47.63 billion, which would represent changes of +15.24% and +34.63%, respectively, from the prior year.

Any recent changes to analyst estimates for TCEHY should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Within the past 30 days, our consensus EPS projection remained stagnant. TCEHY is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, TCEHY is currently trading at a Forward P/E ratio of 34.33. This valuation marks a discount compared to its industry's average Forward P/E of 34.73.

Investors should also note that TCEHY has a PEG ratio of 1.08 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.61 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% 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.

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


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