Tencent Holding (TCEHY - Free Report) closed the most recent trading day at $45.73, moving +0.44% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq added 0.44%.
Heading into today, shares of the company had gained 1.88% over the past month, lagging the Computer and Technology sector's gain of 4.56% and the S&P 500's gain of 2.91% in that time.
Wall Street will be looking for positivity from TCEHY as it approaches its next earnings report date. In that report, analysts expect TCEHY to post earnings of $0.28 per share. This would mark no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $12.33 billion, up 21.3% from the year-ago period.
Investors should also note any recent changes to analyst estimates for TCEHY. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Within the past 30 days, our consensus EPS projection has moved 0.8% lower. TCEHY currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TCEHY currently has a Forward P/E ratio of 32.87. Its industry sports an average Forward P/E of 24.89, so we one might conclude that TCEHY is trading at a premium comparatively.
Meanwhile, TCEHY's PEG ratio is currently 1.31. 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 2.7 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 146, putting it in the bottom 43% 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.