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

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Tencent Holding Ltd. (TCEHY - Free Report) closed the most recent trading day at $60.20, moving -0.68% from the previous trading session. This move lagged the S&P 500's daily gain of 0.42%.

Heading into today, shares of the company had gained 4.3% over the past month, lagging the Computer and Technology sector's gain of 6.71% and the S&P 500's gain of 7.03% in that time.

TCEHY will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.52, up 8.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $22.14 billion, up 22.12% from the year-ago period.

TCEHY's full-year Zacks Consensus Estimates are calling for earnings of $2.10 per share and revenue of $87.71 billion. These results would represent year-over-year changes of +14.13% and +25.28%, respectively.

Investors might also notice recent changes to analyst estimates for TCEHY. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 has moved 1.59% lower. TCEHY is currently a Zacks Rank #4 (Sell).

In terms of valuation, TCEHY is currently trading at a Forward P/E ratio of 28.93. This represents a premium compared to its industry's average Forward P/E of 26.72.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% 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.

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


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