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Baidu Inc. (BIDU) closed the most recent trading day at $159.47, moving -1.66% from the previous trading session. This move lagged the S&P 500's daily loss of 0.24%.
Heading into today, shares of the web search company had lost 0.67% over the past month, outpacing the Computer and Technology sector's loss of 5.49% and the S&P 500's loss of 2.12% in that time.
Wall Street will be looking for positivity from BIDU as it approaches its next earnings report date. On that day, BIDU is projected to report earnings of $2.16 per share, which would represent a year-over-year decline of 28%. Our most recent consensus estimate is calling for quarterly revenue of $4.97 billion, up 19.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.81 per share and revenue of $19.55 billion, which would represent changes of -10.1% and +24.79%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BIDU. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BIDU is currently a Zacks Rank #3 (Hold).
In terms of valuation, BIDU is currently trading at a Forward P/E ratio of 18.41. This valuation marks a discount compared to its industry's average Forward P/E of 27.27.
Investors should also note that BIDU has a PEG ratio of 10.11 right now. 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. The Internet - Services was holding an average PEG ratio of 3.88 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 155, which puts it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Baidu, Inc. (BIDU) : Free Stock Analysis Report
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