Tencent 0700 03 (Aug 18 - Sep 21)
Posted: Tue Aug 07, 2018 12:44 pm
vested
Best OTC Stocks to Buy: Tencent (TCEHY)
Tencent (OTCMKTS:TCEHY) has become the largest OTC stock trading today.
With a $430 billion market cap, the Shenzhen and Cayman Islands-based conglomerate has grown into one of the world’s largest companies.
Tencent serves the Chinese market in the internet, social networking, gaming, payment systems, e-commerce, venture capital and many other areas.
The company competes with the likes of Alibaba and JD.com (NASDAQ:JD) at home. Overseas, Tencent’s influence is also felt in the U.S. as it competes with Activision (NASDAQ:ATVI) and other gaming companies for market share in the emerging esports field. This only scratches the surface of Tencent’s influence.
Due to its reach and growth, Tencent’s size impact has become too large to ignore. Analysts expect the company to earn $1.30-per-share this year. For 2019, they expect earnings to rise to $1.80-per-share.
In fact, for the next five years, Wall Street believes the company will see an average of 38.5% earnings growth per year.
Even with the growth, the forward P/E stands at about 35. While its P/E stands well above S&P 500’s average, it has reached a tiny fraction of the P/E where Amazon (NASDAQ:AMZN) trades.
To me, 20% less percentage growth to buy in at one-sixth of the P/E sounds like a worthwhile trade-off.
Given the lower P/E relative to earnings growth and its position in the emerging Chinese market, TCEHY should serve as one of the best OTC stocks to buy despite its size.
Source: Investor Place
Best OTC Stocks to Buy: Tencent (TCEHY)
Tencent (OTCMKTS:TCEHY) has become the largest OTC stock trading today.
With a $430 billion market cap, the Shenzhen and Cayman Islands-based conglomerate has grown into one of the world’s largest companies.
Tencent serves the Chinese market in the internet, social networking, gaming, payment systems, e-commerce, venture capital and many other areas.
The company competes with the likes of Alibaba and JD.com (NASDAQ:JD) at home. Overseas, Tencent’s influence is also felt in the U.S. as it competes with Activision (NASDAQ:ATVI) and other gaming companies for market share in the emerging esports field. This only scratches the surface of Tencent’s influence.
Due to its reach and growth, Tencent’s size impact has become too large to ignore. Analysts expect the company to earn $1.30-per-share this year. For 2019, they expect earnings to rise to $1.80-per-share.
In fact, for the next five years, Wall Street believes the company will see an average of 38.5% earnings growth per year.
Even with the growth, the forward P/E stands at about 35. While its P/E stands well above S&P 500’s average, it has reached a tiny fraction of the P/E where Amazon (NASDAQ:AMZN) trades.
To me, 20% less percentage growth to buy in at one-sixth of the P/E sounds like a worthwhile trade-off.
Given the lower P/E relative to earnings growth and its position in the emerging Chinese market, TCEHY should serve as one of the best OTC stocks to buy despite its size.
Source: Investor Place