Yahoo Finance Baidu Inc. (BIDU) Gains As Market Dips: What You Should Know
Baidu Inc. (BIDU) closed at $186.34 in the latest trading session, marking a +0.42% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.31%.
Heading into today, shares of the web search company had lost 4.01% over the past month, lagging the Computer and Technology sector's gain of 7.7% and the S&P 500's gain of 1.56% in that time.
Wall Street will be looking for positivity from BIDU as it approaches its next earnings report date. In that report, analysts expect BIDU to post earnings of $2.02 per share. This would mark a year-over-year decline of 2.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.75 billion, up 28.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.98 per share and revenue of $19.97 billion. These totals would mark changes of -8.37% and +27.47%, respectively, from last year.
Any recent changes to analyst estimates for BIDU should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 has moved 5.78% lower. BIDU currently has a Zacks Rank of #3 (Hold).
Investors should also note BIDU's current valuation metrics, including its Forward P/E ratio of 20.66. This represents a discount compared to its industry's average Forward P/E of 28.52.
Also, we should mention that BIDU has a PEG ratio of 4.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Services stocks are, on average, holding a PEG ratio of 2.06 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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