ZACKSยท2024-11-25 18:01Core Viewpoint - Tencent Holding Ltd. has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4][6]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Tencent's earnings per share (EPS) for the fiscal year ending December 2024 is projected at $3.21, reflecting a year-over-year increase of 39% [9]. - Over the past three months, the Zacks Consensus Estimate for Tencent has risen by 5.5%, indicating a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on changes in a company's earnings picture, making it a reliable tool for investors to gauge stock performance [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting their superior earnings estimate revision features [10][12]. Market Implications - The upgrade to Zacks Rank 1 for Tencent suggests that the stock is likely to experience buying pressure and an increase in price due to improved earnings outlook [4][6]. - The correlation between earnings estimate revisions and near-term stock movements underscores the importance of tracking these revisions for investment decisions [7][5].