This Chinese Entertainment Stock Just Doubled in The Last Month
“A leader is one who knows the way, goes the way, and shows the way.”
When targeting stocks for our portfolio, we want to focus on the cream of the crop that are leading the pack and displaying signs of outperformance. Many Chinese stocks appear to have bottomed out all the way back in March, and these companies are leading the charge as this recent equity rally marches on. And as China eases up on their stringent COVID policies and continues to lift lockdown restrictions, there’s plenty of reasons to believe the run-up in these stocks may be just getting started.To get more chinese entertainment news, you can visit shine news official website.
One company that is showing relative strength is Tencent Music Entertainment Group TME, a Zacks Rank #2 (Buy) stock. TME fell victim to the broad decline in Chinese equities over the past year. This has presented a unique opportunity, as shares have become relatively undervalued and underappreciated. TME is ranked favorably by our Zacks Style Scores, including best-possible ‘A’ ratings in each of our Growth and Momentum categories. This indicates a strong likelihood that the stock propels higher on the powerful combination of favorable growth metrics and stock price performance.
TME is a component of the Zacks Internet – Content industry group, which currently ranks in the top 23% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months. Historical research studies suggest that approximately half of a stock’s future price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
By targeting stocks contained within the top industry groups, we can dramatically improve our odds of success. Also note the promising characteristics for this industry below: