Yahoo Finance Baidu Inc. (BIDU) Gains As Market Dips: What You Should Know
Baidu Inc. (BIDU) closed the most recent trading day at $107.21, moving +1.2% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.08%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.22%.
Prior to today's trading, shares of the web search company had lost 15.37% over the past month. This has lagged the Computer and Technology sector's gain of 2.9% and the S&P 500's gain of 1.42% in that time.
The investment community will be paying close attention to the earnings performance of Baidu Inc. in its upcoming release. The company is slated to reveal its earnings on November 21, 2023. The company's earnings per share (EPS) are projected to be $2.45, reflecting a 3.38% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.78 billion, showing a 4.61% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.57 per share and revenue of $18.63 billion. These totals would mark changes of +23.77% and +1.93%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Baidu Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 9.62% lower. Baidu Inc. currently has a Zacks Rank of #4 (Sell).
Investors should also note Baidu Inc.'s current valuation metrics, including its Forward P/E ratio of 10.03. For comparison, its industry has an average Forward P/E of 23.34, which means Baidu Inc. is trading at a discount to the group.
Also, we should mention that BIDU has a PEG ratio of 0.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services industry currently had an average PEG ratio of 1.94 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% 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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Baidu, Inc. (BIDU) : Free Stock Analysis Report
