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In the latest trading session, Baidu Inc. (BIDU) closed at $117.80, marking a +0.74% move from the previous day. This move outpaced the S&P 500's daily loss of 0.4%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 0.18%.
Heading into today, shares of the web search company had lost 9.74% over the past month, outpacing the Computer and Technology sector's loss of 11.29% and lagging the S&P 500's loss of 9.39% in that time.
Baidu Inc. will be looking to display strength as it nears its next earnings release, which is expected to be May 26, 2022. The company is expected to report EPS of $0.82, down 56.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.46 billion, up 3.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.24 per share and revenue of $21.18 billion, which would represent changes of -1.9% and +9.79%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Baidu Inc.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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. Baidu Inc. is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, Baidu Inc. is currently trading at a Forward P/E ratio of 14.19. Its industry sports an average Forward P/E of 20.49, so we one might conclude that Baidu Inc. is trading at a discount comparatively.
Also, we should mention that BIDU has a PEG ratio of 7.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BIDU's industry had an average PEG ratio of 2.27 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 180, putting it in the bottom 29% 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.
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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