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IQIYI, Inc. Sponsored ADR (IQ) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

iQIYI, Inc. Sponsored ADR (IQ) closed at $16.86 in the latest trading session, marking a -1.81% move from the prior day. This move lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.38%.

Heading into today, shares of the company had lost 14.11% over the past month, lagging the Consumer Discretionary sector's loss of 6.34% and the S&P 500's loss of 3.57% in that time.

Wall Street will be looking for positivity from IQ as it approaches its next earnings report date. This is expected to be August 19, 2019. On that day, IQ is projected to report earnings of -$0.43 per share, which would represent year-over-year growth of 4.44%. Meanwhile, our latest consensus estimate is calling for revenue of $1.06 billion, up 13.39% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.41 per share and revenue of $4.60 billion, which would represent changes of +42.91% and +23.37%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for IQ. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 2.17% lower. IQ is currently sporting 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 gauges the strength of our individual 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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