Baidu Inc. (BIDU) closed at $112.75 in the latest trading session, marking a -0.62% move from the prior day. This move lagged the S&P 500's daily loss of 0.26%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.24%.
Coming into today, shares of the web search company had lost 3.86% in the past month. In that same time, the Computer and Technology sector gained 5.19%, while the S&P 500 gained 2.87%.
BIDU will be looking to display strength as it nears its next earnings release, which is expected to be August 19, 2019. In that report, analysts expect BIDU to post earnings of $1.15 per share. This would mark a year-over-year decline of 63.84%. Meanwhile, our latest consensus estimate is calling for revenue of $3.80 billion, down 3.41% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.30 per share and revenue of $15.86 billion. These totals would mark changes of -45.02% and +3.51%, respectively, from last year.
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.
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. Within the past 30 days, our consensus EPS projection has moved 7.5% higher. BIDU is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that BIDU has a Forward P/E ratio of 21.41 right now. For comparison, its industry has an average Forward P/E of 29.08, which means BIDU is trading at a discount to the group.
It is also worth noting that BIDU currently has a PEG ratio of 2.73. 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 industry currently had an average PEG ratio of 2.99 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 44% 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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