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Tencent Holding Ltd. (TCEHY) Gains As Market Dips: What You Should Know

This story originally appeared on Zacks

In the latest trading session, Tencent Holding Ltd. (TCEHY) closed at $62.83, marking a +0.08% move from the previous day. This change outpaced the S&P 500’s 0.51% loss on the day.

Coming into today, shares of the company had gained 6.41% in the past month. In that same time, the Computer and Technology sector lost 1.72%, while the S&P 500 gained 3.08%.

Investors will be hoping for strength from TCEHY as it approaches its next earnings release. On that day, TCEHY is projected to report earnings of $0.52 per share, which would represent year-over-year growth of 8.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.14 billion, up 22.12% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.10 per share and revenue of $87.71 billion, which would represent changes of +14.13% and +25.28%, respectively, from the prior year.

Any recent changes to analyst estimates for TCEHY should also be noted by investors. 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. 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 1.59% lower. TCEHY is currently a Zacks Rank #5 (Strong Sell).

Looking at its valuation, TCEHY is holding a Forward P/E ratio of 29.97. This valuation marks a premium compared to its industry’s average Forward P/E of 27.39.

The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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