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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 the most recent trading day at $18.93, moving -0.53% from the previous trading session. This change lagged the S&P 500's daily loss of 0.26%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.24%.

Coming into today, shares of the company had lost 8.2% in the past month. In that same time, the Consumer Discretionary sector gained 0.61%, while the S&P 500 gained 2.87%.

IQ will be looking to display strength as it nears its next earnings release, which is expected to be August 19, 2019. On that day, IQ is projected to report earnings of -$0.39 per share, which would represent year-over-year growth of 13.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.04 billion, up 11.5% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.38 per share and revenue of $4.64 billion, which would represent changes of +44.13% and +24.26%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for IQ. Recent revisions tend to reflect the latest near-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. 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 remained stagnant. IQ currently has a Zacks Rank of #3 (Hold).

The Film and Television Production and Distribution industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% 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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