In the latest trading session, Baidu Inc. (BIDU) closed at $165.61, marking a -0.37% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq lost 0.57%.
Coming into today, shares of the web search company had lost 2.78% in the past month. In that same time, the Computer and Technology sector gained 4.99%, while the S&P 500 gained 4%.
Wall Street will be looking for positivity from BIDU as it approaches its next earnings report date. This is expected to be May 16, 2019. In that report, analysts expect BIDU to post earnings of $0.54 per share. This would mark a year-over-year decline of 79.23%. Meanwhile, our latest consensus estimate is calling for revenue of $3.61 billion, up 8.42% from the prior-year quarter.
BIDU's full-year Zacks Consensus Estimates are calling for earnings of $7.61 per share and revenue of $17.75 billion. These results would represent year-over-year changes of -21.06% and +15.83%, respectively.
It is also important to note the recent changes to analyst estimates for BIDU. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 35.3% lower within the past month. BIDU currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, BIDU is currently trading at a Forward P/E ratio of 21.85. Its industry sports an average Forward P/E of 34.78, so we one might conclude that BIDU is trading at a discount comparatively.
Also, we should mention that BIDU has a PEG ratio of 2.79. 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. The Internet - Services industry currently had an average PEG ratio of 3.73 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 201, putting it in the bottom 22% 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.
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