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

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In the latest trading session, Tencent Holding Ltd. (TCEHY - Free Report) closed at $81.80, marking a +1.12% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.09%.

Prior to today's trading, shares of the company had gained 4.48% over the past month. This has lagged the Computer and Technology sector's gain of 6.99% and the S&P 500's gain of 5.05% in that time.

Investors will be hoping for strength from TCEHY as it approaches its next earnings release. On that day, TCEHY is projected to report earnings of $0.53 per share, which would represent year-over-year growth of 32.5%. Our most recent consensus estimate is calling for quarterly revenue of $20.44 billion, up 32.04% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.39 per share and revenue of $92.62 billion, which would represent changes of +29.89% and +32.29%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TCEHY. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.23% lower within the past month. TCEHY currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that TCEHY has a Forward P/E ratio of 33.92 right now. For comparison, its industry has an average Forward P/E of 29.17, which means TCEHY is trading at a premium to the group.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 27% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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