In the latest trading session, Baidu Inc. (BIDU) closed at $131.37, marking a +0.67% move from the previous day. This move lagged the S&P 500's daily gain of 1.5%. Elsewhere, the Dow gained 1.44%, while the tech-heavy Nasdaq added 2.1%.
Coming into today, shares of the web search company had lost 4.01% in the past month. In that same time, the Computer and Technology sector gained 3.43%, while the S&P 500 gained 0.54%.
Investors will be hoping for strength from BIDU as it approaches its next earnings release, which is expected to be February 27, 2020. In that report, analysts expect BIDU to post earnings of $1.82 per share. This would mark a year-over-year decline of 5.21%. Our most recent consensus estimate is calling for quarterly revenue of $3.96 billion, up 0.17% from the year-ago period.
Any recent changes to analyst estimates for BIDU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.08% lower. 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 15.45 right now. For comparison, its industry has an average Forward P/E of 27.31, which means BIDU is trading at a discount to the group.
Meanwhile, BIDU's PEG ratio is currently 2.13. 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 2.22 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Baidu, Inc. (BIDU) : Free Stock Analysis Report
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