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IQIYI, Inc. Sponsored ADR (IQ) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

iQIYI, Inc. Sponsored ADR (IQ) closed at $18.67 in the latest trading session, marking a -0.74% move from the prior day. This change lagged the S&P 500's 0.65% loss on the day. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 0.46%.

Heading into today, shares of the company had gained 1.79% over the past month, lagging the Consumer Discretionary sector's gain of 4.4% and the S&P 500's gain of 4.11% in that time.

Investors will be hoping for strength from IQ as it approaches its next earnings release. In that report, analysts expect IQ to post earnings of -$0.39 per share. This would mark year-over-year growth of 13.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, up 11.5% from the year-ago period.

IQ's full-year Zacks Consensus Estimates are calling for earnings of -$1.38 per share and revenue of $4.64 billion. These results would represent year-over-year changes of +44.13% and +24.26%, respectively.

Any recent changes to analyst estimates for IQ should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IQ is currently a Zacks Rank #1 (Strong Buy).

The Film and Television Production and Distribution industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 14% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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