Baidu Inc. (BIDU) Stock Moves -0.13%: What You Should Know
Baidu Inc. (BIDU) closed at $78.13 in the latest trading session, marking a -0.13% move from the prior day. This change was narrower than the S&P 500's 2.5% loss on the day. Meanwhile, the Dow lost 1.55%, and the Nasdaq, a tech-heavy index, lost 0.19%.
Coming into today, shares of the web search company had lost 36.55% in the past month. In that same time, the Computer and Technology sector gained 2.59%, while the S&P 500 gained 7.7%.
Investors will be hoping for strength from Baidu Inc. as it approaches its next earnings release. On that day, Baidu Inc. is projected to report earnings of $2.44 per share, which would represent year-over-year growth of 7.02%. Meanwhile, our latest consensus estimate is calling for revenue of $4.74 billion, down 4.31% from the prior-year quarter.
BIDU's full-year Zacks Consensus Estimates are calling for earnings of $9.05 per share and revenue of $18.04 billion. These results would represent year-over-year changes of +7.74% and -6.5%, respectively.
It is also important to note the recent changes to analyst estimates for Baidu Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
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 0.94% lower within the past month. Baidu Inc. is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Baidu Inc. currently has a Forward P/E ratio of 8.64. Its industry sports an average Forward P/E of 20, so we one might conclude that Baidu Inc. is trading at a discount comparatively.
Investors should also note that BIDU has a PEG ratio of 0.41 right now. 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 1.69 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 78, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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