In the latest trading session, iQIYI, Inc. Sponsored ADR (IQ) closed at $19.75, marking a +0.2% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Heading into today, shares of the company had gained 16.15% over the past month, outpacing the Consumer Discretionary sector's gain of 5.08% and the S&P 500's gain of 4.58% in that time.
IQ will be looking to display strength as it nears its next earnings release. On that day, IQ is projected to report earnings of -$0.56 per share, which would represent year-over-year growth of 10.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.06 billion, up 4.5% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.94 per share and revenue of $4.17 billion, which would represent changes of +21.32% and +11.66%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for IQ. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 10% lower within the past month. IQ currently has a Zacks Rank of #4 (Sell).
The Film and Television Production and Distribution industry is part of the Consumer Discretionary 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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