Baidu Inc. (BIDU) closed at $111.70 in the latest trading session, marking a -0.49% move from the prior day. This change lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.71%.
Prior to today's trading, shares of the web search company had lost 5.11% over the past month. This has lagged the Computer and Technology sector's gain of 2.34% and the S&P 500's gain of 1.93% in that time.
BIDU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.15, down 63.84% from the prior-year quarter. 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.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.85% higher. BIDU is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, BIDU currently has a Forward P/E ratio of 21.18. For comparison, its industry has an average Forward P/E of 27.95, which means BIDU is trading at a discount to the group.
Investors should also note that BIDU has a PEG ratio of 2.7 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. The Internet - Services industry currently had an average PEG ratio of 3.07 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 102, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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