Baidu Inc. (BIDU) Laps the Stock Market: Here's Why
Baidu Inc. (BIDU) closed at $104.99 in the latest trading session, marking a +1.28% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.86%. Elsewhere, the Dow gained 1.22%, while the tech-heavy Nasdaq added 0.51%.
Coming into today, shares of the web search company had lost 7.74% in the past month. In that same time, the Computer and Technology sector gained 3.76%, while the S&P 500 gained 2.84%.
The upcoming earnings release of Baidu Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $3.20, marking a 36.75% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.56 billion, reflecting a 0.56% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.95 per share and revenue of $20.37 billion. These totals would mark changes of +13.7% and +7.92%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Baidu Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.35% decrease. Baidu Inc. is holding a Zacks Rank of #4 (Sell) right now.
Looking at valuation, Baidu Inc. is presently trading at a Forward P/E ratio of 8. This expresses a discount compared to the average Forward P/E of 25.35 of its industry.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Baidu, Inc. (BIDU) : Free Stock Analysis Report
