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Is Tencent Holding (TCEHY) Outperforming Other Computer and Technology Stocks This Year?

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The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Tencent Holding (TCEHY - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of TCEHY and the rest of the Computer and Technology group's stocks.

Tencent Holding is one of 631 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. TCEHY is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for TCEHY's full-year earnings has moved 0.46% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, TCEHY has moved about 35.97% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 10.21% on average. This means that Tencent Holding is outperforming the sector as a whole this year.

Looking more specifically, TCEHY belongs to the Internet - Services industry, a group that includes 50 individual stocks and currently sits at #116 in the Zacks Industry Rank. Stocks in this group have gained about 16.95% so far this year, so TCEHY is performing better this group in terms of year-to-date returns.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to TCEHY as it looks to continue its solid performance.


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