Tencent Holding (TCEHY - Free Report) closed the most recent trading day at $44.98, moving -0.62% from the previous trading session. This move lagged the S&P 500's daily loss of 0.08%. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Heading into today, shares of the company had gained 5.08% over the past month, outpacing the Computer and Technology sector's gain of 3.22% and the S&P 500's gain of 0.52% in that time.
TCEHY will be looking to display strength as it nears its next earnings release. In that report, analysts expect TCEHY to post earnings of $0.33 per share. This would mark year-over-year growth of 10%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.07 billion, up 13.05% from the year-ago period.
It is also important to note the recent changes to analyst estimates for TCEHY. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TCEHY currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that TCEHY has a Forward P/E ratio of 32.68 right now. For comparison, its industry has an average Forward P/E of 25.48, which means TCEHY is trading at a premium to the group.
We can also see that TCEHY currently has a PEG ratio of 1.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TCEHY's industry had an average PEG ratio of 2.97 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 151, which puts it in the bottom 41% 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.