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Baidu Inc. (BIDU) closed the most recent trading day at $163.82, moving -0.16% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.46%.
Prior to today's trading, shares of the web search company had lost 12.23% over the past month. This has lagged the Computer and Technology sector's gain of 2.57% and the S&P 500's gain of 1.69% in that time.
Investors will be hoping for strength from BIDU as it approaches its next earnings release, which is expected to be August 12, 2021. On that day, BIDU is projected to report earnings of $1.93 per share, which would represent a year-over-year decline of 7.21%. Our most recent consensus estimate is calling for quarterly revenue of $4.76 billion, up 29.04% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.60 per share and revenue of $19.92 billion, which would represent changes of -12.24% and +27.14%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BIDU. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 9.45% lower. BIDU is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note BIDU's current valuation metrics, including its Forward P/E ratio of 19.08. For comparison, its industry has an average Forward P/E of 27.11, which means BIDU is trading at a discount to the group.
We can also see that BIDU currently has a PEG ratio of 10.48. 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 was holding an average PEG ratio of 3.43 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Baidu, Inc. (BIDU) : Free Stock Analysis Report
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