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Tencent Holding (TCEHY) Dips More Than Broader Markets: What You Should Know

Tencent Holding (TCEHY) closed at $40.19 in the latest trading session, marking a -0.77% move from the prior day. This change lagged the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 0.39%.

Heading into today, shares of the company had gained 10.66% over the past month, outpacing the Computer and Technology sector's gain of 0.38% and the S&P 500's loss of 2.56% in that time.

Investors will be hoping for strength from TCEHY as it approaches 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, the Zacks Consensus Estimate for revenue is projecting net sales of $12.31 billion, up 21.13% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.15 per share and revenue of $45.32 billion. These totals would mark changes of +9.52% and +28.1%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for TCEHY. 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.

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. The Zacks Consensus EPS estimate has moved 9.61% lower within the past month. TCEHY is holding a Zacks Rank of #5 (Strong Sell) right now.

In terms of valuation, TCEHY is currently trading at a Forward P/E ratio of 35.37. For comparison, its industry has an average Forward P/E of 28.3, which means TCEHY is trading at a premium to the group.

We can also see that TCEHY currently has a PEG ratio of 1.11. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 31% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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