Tencent Holdings Stock Buy Hold or Sell Recommendation

TCEHY Stock  USD 39.03  0.12  0.31%   
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding Tencent Holdings is 'Hold'. Macroaxis provides Tencent Holdings buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding TCEHY positions. The advice algorithm takes into account all of Tencent Holdings' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Tencent Holdings' buy or sell advice are summarized below:
Real Value
37.7
Hype Value
38.91
Market Value
39.03
Naive Value
40
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Tencent Holdings given historical horizon and risk tolerance towards Tencent Holdings. When Macroaxis issues a 'buy' or 'sell' recommendation for Tencent Holdings, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Tencent Holdings Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Tencent and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Tencent Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate.

Execute Tencent Holdings Buy or Sell Advice

The Tencent recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Tencent Holdings. Macroaxis does not own or have any residual interests in Tencent Holdings or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Tencent Holdings' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Tencent HoldingsBuy Tencent Holdings
Hold

Market Performance

WeakDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Tencent Holdings has a Risk Adjusted Performance of 8.0E-4, Jensen Alpha of (0.13), Total Risk Alpha of (0.58) and Treynor Ratio of (0.05)
Tencent Holdings recommendation module can be used to check and cross-verify current trade recommendation provided by analysts inspecting the firm's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Tencent Holdings is not overpriced, please validate all Tencent Holdings fundamentals, including its book value per share, and the relationship between the net income and beta . Given that Tencent Holdings has a price to sales of 0.72 X, we advise you to double-check Tencent Holdings market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Tencent Holdings thematic classifications

Online Gaming Idea
Online Gaming
Equities that are involved in online gaming space
Cash Cows Idea
Cash Cows
Companies that have the ability to maintain consistent cash flow over time

Tencent Holdings Returns Distribution Density

The distribution of Tencent Holdings' historical returns is an attempt to chart the uncertainty of Tencent Holdings' future price movements. The chart of the probability distribution of Tencent Holdings daily returns describes the distribution of returns around its average expected value. We use Tencent Holdings price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Tencent Holdings returns is essential to provide solid investment advice for Tencent Holdings.
Mean Return
-0.03
Value At Risk
-3.1
Potential Upside
3.61
Standard Deviation
2.41
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Tencent Holdings historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Tencent Holdings Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Tencent Holdings or Communication Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Tencent Holdings' price will be affected by overall pink sheet market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Tencent pink sheet's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.13
β
Beta against NYSE Composite0.73
σ
Overall volatility
2.06
Ir
Information ratio -0.07

Tencent Holdings Volatility Alert

Tencent Holdings exhibits very low volatility with skewness of -0.69 and kurtosis of 3.16. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Tencent Holdings' pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Tencent Holdings' pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Tencent Holdings Fundamentals Vs Peers

Comparing Tencent Holdings' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Tencent Holdings' direct or indirect competition across all of the common fundamentals between Tencent Holdings and the related equities. This way, we can detect undervalued stocks with similar characteristics as Tencent Holdings or determine the pink sheets which would be an excellent addition to an existing portfolio. Peer analysis of Tencent Holdings' fundamental indicators could also be used in its relative valuation, which is a method of valuing Tencent Holdings by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Tencent Holdings to competition
FundamentalsTencent HoldingsPeer Average
Return On Equity0.2-0.31
Return On Asset0.0415-0.14
Profit Margin0.32 %(1.27) %
Operating Margin0.18 %(5.51) %
Current Valuation410.64 B16.62 B
Shares Outstanding9.56 B571.82 M
Shares Owned By Institutions0.12 %39.21 %
Price To Earning14.22 X28.72 X
Price To Book3.69 X9.51 X
Price To Sales0.72 X11.42 X
Revenue560.12 B9.43 B
Gross Profit245.93 B27.38 B
EBITDA252.19 B3.9 B
Net Income224.82 B570.98 M
Cash And Equivalents292.19 B2.7 B
Cash Per Share30.63 X5.01 X
Total Debt282.53 B5.32 B
Debt To Equity0.44 %48.70 %
Current Ratio1.38 X2.16 X
Book Value Per Share79.23 X1.93 K
Cash Flow From Operations175.19 B971.22 M
Earnings Per Share2.69 X3.12 X
Price To Earnings To Growth1.05 X4.89 X
Target Price47.77
Number Of Employees108.84 K18.84 K
Beta0.61-0.15
Market Capitalization465.23 B19.03 B
Total Asset1.61 T29.47 B
Retained Earnings126.86 B9.33 B
Working Capital24.17 B1.48 B
Current Asset120.22 B9.34 B
Current Liabilities96.05 B7.9 B
Z Score0.68.72

Tencent Holdings Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Tencent . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Tencent Holdings Buy or Sell Advice

When is the right time to buy or sell Tencent Holdings? Buying financial instruments such as Tencent Pink Sheet isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Tencent Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Farming Thematic Idea Now

Farming
Farming Theme
Companies producing farming products and providing services for farmers. The Farming theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Farming Theme or any other thematic opportunities.
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Check out Tencent Holdings Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note that the Tencent Holdings information on this page should be used as a complementary analysis to other Tencent Holdings' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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Please note, there is a significant difference between Tencent Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Tencent Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tencent Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.