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Tencent Holding Ltd. (TCEHY) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Tencent Holding Ltd. (TCEHY - Free Report) closed at $61.20, marking a -1.24% move from the previous day. This change lagged the S&P 500's daily loss of 0.54%.

Heading into today, shares of the company had lost 17.11% over the past month, lagging the Computer and Technology sector's gain of 2.05% and the S&P 500's gain of 3.05% in that time.

Wall Street will be looking for positivity from TCEHY as it approaches its next earnings report date. On that day, TCEHY is projected to report earnings of $0.54 per share, which would represent year-over-year growth of 22.73%. Meanwhile, our latest consensus estimate is calling for revenue of $21.54 billion, up 32.84% from the prior-year quarter.

TCEHY's full-year Zacks Consensus Estimates are calling for earnings of $2.25 per share and revenue of $91.51 billion. These results would represent year-over-year changes of +22.28% and +30.71%, respectively.

It is also important to note the 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.92% lower. TCEHY currently has a Zacks Rank of #5 (Strong Sell).

Investors should also note TCEHY's current valuation metrics, including its Forward P/E ratio of 27.6. For comparison, its industry has an average Forward P/E of 27.89, which means TCEHY is trading at a discount to the group.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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