10 Best Breakout Stocks to Invest In

5. Tencent Music Entertainment Group (NYSE:TME)

Share Price as of November 14: $19.07

200-Day Simple Moving Average: $18.66

Relative Volume: 4.29

Number of Hedge Fund Holders: 31

Tencent Music Entertainment Group (NYSE:TME) is one of the best breakout stocks to invest in. On November 12, analysts at Barclays raised Tencent Music Entertainment Group (NYSE:TME)’s price target to $28 from $27, impressed by the company’s strong third-quarter results. The firm also reiterated an Overweight rating buoyed by the company’s growth trajectory.

The Chinese music streaming company reported a 20.6% increase in revenue, totaling $1.19 billion, driven by a 27.2% rise in online music service revenues to $979 million. The growth is attributed to increases across multiple revenue streams, including music subscriptions, offline performances, and advertising services.

For starters, subscription revenues were up 17.2% year-over-year to $632 million, driven by growth in the SVIP membership program. Tencent Music Entertainment Group also benefited from the monthly average revenue per user increasing to $1.60 from $1.50, attributed to the success of its premium tier offerings.

Consequently, operating profit surged 26.4% to $381 million. Net profit attributed to shareholders increased 36% to $302 million, with diluted earnings per share coming in at $0.19. The company is banking on its expanded music catalog owing to strategic partnerships with labels in South Korea and Japan. The company also strengthened its offering with the unveiling of an ad-supported membership tier that attracts listeners from the free tier.

Tencent Music Entertainment Group (NYSE:TME) provides online music, audio, and karaoke services in China. The company aims to create a social and interactive experience for users, providing services for musicians and labels to distribute and monetize their content.