Baidu Inc. (BIDU) closed the most recent trading day at $97.08, moving +1.37% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.92%, while the tech-heavy Nasdaq added 0.51%.
Investors will be hoping for strength from BIDU as it approaches its next earnings release. On that day, BIDU is projected to report earnings of $0.73 per share, which would represent year-over-year growth of 78.05%. Our most recent consensus estimate is calling for quarterly revenue of $3.13 billion, down 12.85% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.15 per share and revenue of $16.10 billion, which would represent changes of -4.41% and +3.83%, respectively, from the prior 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. 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. 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.
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. The Zacks Consensus EPS estimate has moved 11.95% lower within the past month. BIDU currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, BIDU is holding a Forward P/E ratio of 13.39. For comparison, its industry has an average Forward P/E of 28.05, which means BIDU is trading at a discount to the group.
It is also worth noting that BIDU currently has a PEG ratio of 1.49. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.47 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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.
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