Baidu Inc. (NASDAQ:BIDU) closed the most recent trading day at $170.98, moving +0.34% from the previous trading session. This move outpaced the S&P 500's daily of 0%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, added 0.25%.
Coming into today, shares of the web search company had gained 5.89% in the past month. In that same time, the Computer and Technology sector gained 3.92%, while the S&P 500 gained 2.36%.
BIDU will be looking to display strength as it nears its next earnings release. In that report, analysts expect BIDU to post earnings of $0.79 per share. This would mark a year-over-year decline of 69.62%. Meanwhile, our latest consensus estimate is calling for revenue of $3.62 billion, up 8.73% from the prior-year quarter.
BIDU's full-year Zacks Consensus Estimates are calling for earnings of $8.88 per share and revenue of $17.65 billion. These results would represent year-over-year changes of -7.88% and +15.15%, respectively.
Any recent changes to analyst estimates for BIDU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BIDU is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, BIDU is currently trading at a Forward P/E ratio of 19.19. This valuation marks a discount compared to its industry's average Forward P/E of 25.25.
Also, we should mention that BIDU has a PEG ratio of 1.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 2.85 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Baidu, Inc. (BIDU): Free Stock Analysis Report
Original post
Zacks Investment Research