U.S. markets closed
  • S&P 500

    3,629.65
    -5.76 (-0.16%)
     
  • Dow 30

    29,872.47
    -173.77 (-0.58%)
     
  • Nasdaq

    12,094.40
    +57.62 (+0.48%)
     
  • Russell 2000

    1,845.02
    -8.51 (-0.46%)
     
  • Crude Oil

    45.89
    +0.18 (+0.39%)
     
  • Gold

    1,808.80
    +3.30 (+0.18%)
     
  • Silver

    23.45
    +0.09 (+0.40%)
     
  • EUR/USD

    1.1925
    +0.0006 (+0.05%)
     
  • 10-Yr Bond

    0.8780
    -0.0040 (-0.45%)
     
  • GBP/USD

    1.3389
    +0.0007 (+0.05%)
     
  • USD/JPY

    104.3040
    -0.1360 (-0.13%)
     
  • BTC-USD

    17,795.99
    -873.39 (-4.68%)
     
  • CMC Crypto 200

    347.11
    -23.40 (-6.32%)
     
  • FTSE 100

    6,391.09
    -41.08 (-0.64%)
     
  • Nikkei 225

    26,423.37
    +126.51 (+0.48%)
     

Baidu Inc. (BIDU) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3 min read

In the latest trading session, Baidu Inc. (BIDU) closed at $144.19, marking a +0.13% move from the previous day. The stock lagged the S&P 500's daily gain of 1.17%. At the same time, the Dow added 2.95%, and the tech-heavy Nasdaq lost 1.53%.

Prior to today's trading, shares of the web search company had gained 13.61% over the past month. This has outpaced the Computer and Technology sector's gain of 8.29% and the S&P 500's gain of 4.58% in that time.

BIDU will be looking to display strength as it nears its next earnings release, which is expected to be November 16, 2020. On that day, BIDU is projected to report earnings of $1.85 per share, which would represent year-over-year growth of 5.11%. Our most recent consensus estimate is calling for quarterly revenue of $3.92 billion, down 0.21% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.19 per share and revenue of $15.12 billion. These totals would mark changes of -3.88% and -2.5%, respectively, from last year.

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. 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. 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 has moved 1.63% higher. BIDU is currently a Zacks Rank #3 (Hold).

Looking at its valuation, BIDU is holding a Forward P/E ratio of 20.04. For comparison, its industry has an average Forward P/E of 34.53, which means BIDU is trading at a discount to the group.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 15% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Baidu, Inc. (BIDU) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.