Baidu Inc. (BIDU) closed the most recent trading day at $99.68, moving -0.47% from the previous trading session. This change lagged the S&P 500's 1.3% gain on the day. At the same time, the Dow added 1.21%, and the tech-heavy Nasdaq gained 1.39%.
Prior to today's trading, shares of the web search company had lost 11.53% over the past month. This has lagged the Computer and Technology sector's loss of 4.48% and the S&P 500's loss of 4.84% in that time.
BIDU will be looking to display strength as it nears its next earnings release, which is expected to be August 19, 2019. In that report, analysts expect BIDU to post earnings of $1.15 per share. This would mark a year-over-year decline of 63.84%. Our most recent consensus estimate is calling for quarterly revenue of $3.80 billion, down 3.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.30 per share and revenue of $15.86 billion. These totals would mark changes of -45.02% and +3.51%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BIDU. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 7.5% higher. BIDU is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note BIDU's current valuation metrics, including its Forward P/E ratio of 18.9. Its industry sports an average Forward P/E of 28.19, so we one might conclude that BIDU is trading at a discount comparatively.
Meanwhile, BIDU's PEG ratio is currently 2.41. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.82 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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.
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