Tencent Holding (TCEHY - Free Report) closed the most recent trading day at $47.46, moving -1.74% from the previous trading session. This change lagged the S&P 500's daily loss of 1.65%. At the same time, the Dow lost 1.79%, and the tech-heavy Nasdaq lost 1.96%.
Prior to today's trading, shares of the company had lost 0.64% over the past month. This has lagged the Computer and Technology sector's gain of 1.89% and the S&P 500's gain of 1.53% in that time.
Wall Street will be looking for positivity from TCEHY as it approaches its next earnings report date. On that day, TCEHY is projected to report earnings of $0.33 per share, which would represent year-over-year growth of 10%. Our most recent consensus estimate is calling for quarterly revenue of $13.22 billion, up 14.38% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.46 per share and revenue of $59.66 billion, which would represent changes of +24.79% and +26.29%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TCEHY. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.18% higher. 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 33.08 right now. For comparison, its industry has an average Forward P/E of 35.27, which means TCEHY is trading at a discount to the group.
We can also see that TCEHY currently has a PEG ratio of 1.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services industry currently had an average PEG ratio of 3.86 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 178, which puts it in the bottom 31% 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.
To follow TCEHY in the coming trading sessions, be sure to utilize Zacks.com.