Tencent Holding (TCEHY - Free Report) closed the most recent trading day at $37.85, moving +1.8% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 1.04%.
Heading into today, shares of the company had lost 3.73% over the past month, outpacing the Computer and Technology sector's loss of 7.79% and the S&P 500's loss of 6.28% in that time.
TCEHY will be looking to display strength as it nears its next earnings release, which is expected to be November 21, 2018. The company is expected to report EPS of $0.28, up 7.69% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.66 billion, up 19.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.15 per share and revenue of $45.43 billion, which would represent changes of +9.52% and +28.4%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TCEHY. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.37% lower. TCEHY is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, TCEHY currently has a Forward P/E ratio of 32.47. For comparison, its industry has an average Forward P/E of 35.16, which means TCEHY is trading at a discount to the group.
Investors should also note that TCEHY has a PEG ratio of 1.02 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TCEHY's industry had an average PEG ratio of 2.11 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 84, which puts it in the top 33% 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.
To follow TCEHY in the coming trading sessions, be sure to utilize Zacks.com.