In the latest trading session, Tencent Holding (TCEHY) closed at $39.68, marking a +0.69% move from the previous day. The stock outpaced the S&P 500's daily loss of 2.33%. At the same time, the Dow lost 2.24%, and the tech-heavy Nasdaq lost 3.05%.
Heading into today, shares of the company had gained 7.97% over the past month, outpacing the Computer and Technology sector's loss of 2% and the S&P 500's loss of 1.93% 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. On that day, TCEHY is projected to report earnings of $0.28 per share, which would represent 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.15 per share and revenue of $45.32 billion, which would represent changes of +9.52% and +28.1%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 9.61% lower. 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 34.42. For comparison, its industry has an average Forward P/E of 28.5, which means TCEHY is trading at a premium to the group.
We can also see that TCEHY currently has a PEG ratio of 1.08. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.19 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 84, putting it in the top 33% 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.