In the latest trading session, Baidu Inc. (BIDU) closed at $118.82, marking a -0.63% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.15%.
Prior to today's trading, shares of the web search company had lost 13.92% over the past month. This has lagged the Computer and Technology sector's loss of 13.48% and the S&P 500's loss of 10.24% in that time.
Wall Street will be looking for positivity from Baidu Inc. as it approaches its next earnings report date. On that day, Baidu Inc. is projected to report earnings of $2.51 per share, which would represent year-over-year growth of 10.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.01 billion, up 1.09% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.16 per share and revenue of $18.88 billion, which would represent changes of +9.05% and -2.15%, respectively, from the prior year.
Any recent changes to analyst estimates for Baidu Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection has moved 23.6% higher. Baidu Inc. is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Baidu Inc. has a Forward P/E ratio of 13.06 right now. Its industry sports an average Forward P/E of 20.26, 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 0.63 right now. 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 1.62 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% 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.
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