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In the latest trading session, Baidu Inc. (BIDU) closed at $180.96, marking a +1.09% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.37%.
Prior to today's trading, shares of the web search company had gained 14.22% over the past month. This has outpaced the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 2.13% in that time.
Wall Street will be looking for positivity from BIDU as it approaches its next earnings report date. The company is expected to report EPS of $2.16, down 28% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.97 billion, up 19.63% from the year-ago period.
BIDU's full-year Zacks Consensus Estimates are calling for earnings of $8.81 per share and revenue of $19.51 billion. These results would represent year-over-year changes of -10.1% and +24.56%, respectively.
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. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. BIDU is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, BIDU currently has a Forward P/E ratio of 20.32. For comparison, its industry has an average Forward P/E of 28.24, which means BIDU is trading at a discount to the group.
It is also worth noting that BIDU currently has a PEG ratio of 11.16. 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 4.4 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 101, which puts it in the top 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.
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Baidu, Inc. (BIDU) : Free Stock Analysis Report
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