4 Reasons to Go Long On Tencent Music Entertainment Group [TME]

Tencent Music Entertainment Group [TME] stock is up 1.82 while the S&P 500 has fallen -0.06% on Thursday, 12/03/20. While at the time of this article, TME ATR is sitting at 0.57. This stock’s volatility for the past week remained at 3.34%, while it was 3.79% for the past 30-day period. TME has risen $0.3 from the previous closing price of $16.44 on volume of 5.32 million shares.

On 19, November 2020, Tencent Music Entertainment Group Announces Strategic Partnership and Investment in Wave. According to news published on Yahoo Finance, Tencent Music Entertainment Group (“Tencent Music,” “TME,” or the “Company”) (NYSE: TME), the leading online music entertainment platform in China, today announced a strategic partnership and minority equity investment in Wave, the market leader in interactive virtual entertainment experiences. Under the partnership, TME will be able to air Wave experiences in China across all of its platforms including QQ Music, Kugou Music, Kuwo Music, and WeSing.

Analyst Birdseye View:

The most recent analyst activity for Tencent Music Entertainment Group [NYSE:TME] stock was on August 14, 2020, when it was Upgrade with an Outperform rating from Oppenheimer, which also raised its 12-month price target on the stock to $20. Before that, on September 24, 2020, Needham Recapitulated a Buy rating and elevated its amount target to $17. On June 30, 2020, UBS Upgrade a Buy rating and boosted its price target on this stock to $17. On March 12, 2020, Morgan Stanley Upgrade an Overweight rating and increased its price target to $16. On February 19, 2020, Oppenheimer Downgrade a Perform rating. On February 18, 2020, KeyBanc Capital Markets Downgrade a Sector weight rating. On August 05, 2019, Jefferies Initiated a Buy rating. Loop Capital elevated its amount target by recapitulating a higher weight for this stock.

In the past 52 weeks of trading, this stock has oscillated between a low of $9.22 and a peak of $17.97. Right now, the middling Wall Street analyst 12-month amount mark is $18.00. At the most recent market close, shares of Tencent Music Entertainment Group [NYSE:TME] were valued at $16.74.

FUNDAMENTAL ANALYSIS

Tencent Music Entertainment Group [NYSE:TME] most recently reported quarterly sales of 1.09 billion, which represented growth of 16.40%. This publicly-traded organization’s revenue is $1,019,620 per employee, while its income is $159,634 per employee. This company’s Gross Margin is currently 32.30%, its Operating Margin is 13.40%, its Pretax Margin is +17.92, and its Net Margin is +15.66. Continuing to look at profitability, this corporation’s Return on Assets, Equity, Whole Principal & invested Principal is sitting at 8.20, 9.81, 9.64 and 9.80 respectively.

If looking now at the Principal structure of this organization, it shows its whole liability to the whole Principal at 0.34 and the whole liability to whole assets at 0.28. It shows enduring liability to the whole principal at 0.18 and enduring liability to assets at 0.00 while looking for an extended time period.

Readers are usually of view to make a close observation to the indicators that support and make resistance before moving to any particular stock. As of now, the company’s stock is sitting at 16.50 points at 1st support level, the second support level is making up to 16.27. But as of 1st resistance point, this stock is sitting at 16.93 and at 17.13 for 2nd resistance point.

Tencent Music Entertainment Group [TME] reported its earnings at $0.12 per share in the fiscal quarter closing of 9/29/2020. The Analysts for Wall Street were expecting to report its earnings at $0.11/share signifying the difference of 0.01 and 9.10% surprise value. Comparing the previous quarter ending of 6/29/2020, the stated earnings were $0.1 calling estimates for $0.1/share with the difference of 0 depicting the surprise of 0.00%.

Important Ratio’s To Watch

Meanwhile, turning our focus to liquidity, the Current Ratio for Tencent Music Entertainment Group [NYSE:TME] is 3.50. Likewise, the Quick ratio is also the same, showing Cash ratio at 2.63. Now if looking for a valuation of this stock’s amount to sales ratio it’s 5.34, it’s amount to book ratio is 3.12 and showing 46.24 of P/E (TTM) ratio.