Baidu Inc. (NASDAQ:BIDU) closed at $167.50 in the latest trading session, marking a +0.24% move from the prior day. This move outpaced the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.85%, and the Nasdaq, a tech-heavy index, lost 1.11%.
Prior to today's trading, shares of the web search company had gained 3.42% over the past month. This has lagged the Computer and Technology sector's gain of 12.9% and the S&P 500's gain of 13.44% in that time.
Investors will be hoping for strength from BIDU as it approaches its next earnings release, which is expected to be February 12, 2019. In that report, analysts expect BIDU to post earnings of $1.75 per share. This would mark a year-over-year decline of 23.58%. Meanwhile, our latest consensus estimate is calling for revenue of $3.88 billion, up 7.08% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for BIDU. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 7.67% lower. BIDU is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, BIDU is currently trading at a Forward P/E ratio of 17.33. This represents a discount compared to its industry's average Forward P/E of 29.03.
Also, we should mention that BIDU has a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 2.53 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BIDU in the coming trading sessions, be sure to utilize Zacks.com.
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