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Tencent Music Entertainment Group (NYSE: TME): A Stock Worth Watching

Tencent Music Entertainment Group (NYSE:TME) shares, rose in value on Friday, August 05, with the stock price up by 0.47% to the previous day’s close as strong demand from buyers drove the stock to $4.28.

Actively observing the price movement in the recent trading, the stock is buoying the session at $4.26, falling within a range of $4.17 and $4.385. The value of beta (5-year monthly) is 0.85 whereas the PE ratio is 17.68 over 12-month period. Referring to stock’s 52-week performance, its high was $10.96, and the low was $2.95. On the whole, TME has fluctuated by -14.29% over the past month.

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With the market capitalization of Tencent Music Entertainment Group currently standing at about $7.87 billion, investors are eagerly awaiting this quarter’s results, scheduled for Mar 21, 2022 – Mar 25, 2022. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be $0.07, which is expected to increase to $0.07 for fiscal year $0.35 and then to about $0.39 by fiscal year 2022. Data indicates that the EPS growth is expected to be -23.90% in 2022, while the next year’s EPS growth is forecast to be 11.40%.

Analysts have estimated the company’s revenue for the quarter at $1.23 billion, with a low estimate of $1.17 billion and a high estimate of $1.36 billion. According to the average forecast, sales growth in current quarter could jump up 5.40%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2022, the company’s y-o-y revenues would reach $4.95 billion, representing an increase of 9.10% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were 1 upward and no downward review(s) in last seven days. We see that TME’s technical picture suggests that short-term indicators denote the stock is a 100% Sell on average. However, medium term indicators have put the stock in the category of 50% Sell while long term indicators on average have been pointing out that it is a 100% Sell.

26 analyst(s) have assigned their ratings of the stock’s forecast evaluation on a scale of 1.00-5.00 to indicate a strong buy to a strong sell recommendation. The stock is rated as a Hold by 12 analyst(s), 10 recommend it as a Buy and 2 called the TME stock Overweight. In the meantime, 0 analyst(s) believe the stock as Underweight and 2 think it is a Sell. Thus, investors eager to increase their holdings of the company’s stock will have an opportunity to do so as the average rating for the stock is Overweight.

The stock’s technical analysis shows that the PEG ratio is about 22.96, with the price of TME currently trading nearly -2.90% and -4.78% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 46.09, while the 7-day volatility ratio is showing 7.12% which for the 30-day chart, stands at 5.81%. Furthermore, Tencent Music Entertainment Group (TME)’s beta value is 0.77, and its average true range (ATR) is 0.29.

Data on historical trading for Tencent Music Entertainment Group (NYSE:TME) indicates that the trading volumes over the past 10 days have averaged 8.73 million and over the past 3 months, they’ve averaged 14.28 million. According to company’s latest data on outstanding shares, there are 1.64 billion shares outstanding.

Nearly 5.61% of Tencent Music Entertainment Group’s shares belong to company insiders and institutional investors own 49.40% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 30.1 million shares as on Jul 14, 2022, resulting in a short ratio of 2.14. According to the data, the short interest in Tencent Music Entertainment Group (TME) stood at 1.78% of shares outstanding as of Jul 14, 2022; the number of short shares registered in Jun 14, 2022 reached 33.65 million. The stock has fallen by -37.81% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the TME stock heading into the next quarter.

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