Back to top

Image: Bigstock

Tencent Holding (TCEHY) Flat As Market Gains: What You Should Know

Read MoreHide Full Article

Tencent Holding (TCEHY - Free Report) closed at $38.84 in the latest trading session, marking no change from the prior day. This change lagged the S&P 500's 2.3% gain on the day. At the same time, the Dow added 2.5%, and the tech-heavy Nasdaq gained 2.95%.

Coming into today, shares of the company had gained 20.06% in the past month. In that same time, the Computer and Technology sector lost 1.65%, while the S&P 500 gained 1.21%.

TCEHY will be looking to display strength as it nears its next earnings release, which is expected to be March 20, 2019. In that report, analysts expect TCEHY to post earnings of $0.28 per share. This would mark no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.31 billion, up 21.13% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.15 per share and revenue of $45.32 billion, which would represent changes of +9.52% and +28.1%, respectively, from the prior year.

Any recent changes to analyst estimates for TCEHY should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 11.54% lower within the past month. TCEHY currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, TCEHY currently has a Forward P/E ratio of 33.92. For comparison, its industry has an average Forward P/E of 26.88, which means TCEHY is trading at a premium to the group.

Meanwhile, TCEHY's PEG ratio is currently 1.07. 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. The Internet - Services industry currently had an average PEG ratio of 2.14 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 34% 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Tencent Holding Ltd. (TCEHY) - free report >>

Published in