Baidu Inc. (BIDU) closed the most recent trading day at $102.93, moving +0.03% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.33%.
Prior to today's trading, shares of the web search company had gained 0.88% over the past month. This has lagged the Computer and Technology sector's gain of 3.65% and the S&P 500's gain of 2.66% in that time.
BIDU will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2019. In that report, analysts expect BIDU to post earnings of $1.25 per share. This would mark a year-over-year decline of 54.87%. Meanwhile, our latest consensus estimate is calling for revenue of $3.97 billion, down 3.43% from the prior-year quarter.
BIDU's full-year Zacks Consensus Estimates are calling for earnings of $4.44 per share and revenue of $15.49 billion. These results would represent year-over-year changes of -53.94% and +1.07%, respectively.
Investors should also note any recent changes to analyst estimates for BIDU. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 25.73% lower. BIDU currently has a Zacks Rank of #3 (Hold).
In terms of valuation, BIDU is currently trading at a Forward P/E ratio of 23.18. For comparison, its industry has an average Forward P/E of 27.71, which means BIDU is trading at a discount to the group.
Also, we should mention that BIDU has a PEG ratio of 7.1. 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 2.35 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 151, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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