Tencent Holding (TCEHY - Free Report) closed the most recent trading day at $46.87, moving -0.64% from the previous trading session. This move lagged the S&P 500's daily of 0%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq gained 0.25%.
Heading into today, shares of the company had gained 7.69% over the past month, outpacing the Computer and Technology sector's gain of 3.92% and the S&P 500's gain of 2.36% in that time.
TCEHY will be looking to display strength as it nears its next earnings release. On that day, TCEHY is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 13.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.30 billion, up 15.08% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.46 per share and revenue of $59.81 billion. These totals would mark changes of +24.79% and +26.6%, respectively, from last year.
Any recent changes to analyst estimates for TCEHY should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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 2.41% higher. TCEHY is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note TCEHY's current valuation metrics, including its Forward P/E ratio of 32.24. Its industry sports an average Forward P/E of 25.25, so we one might conclude that TCEHY is trading at a premium comparatively.
Also, we should mention that TCEHY has a PEG ratio of 1.29. 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. The Internet - Services industry currently had an average PEG ratio of 2.85 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 153, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.