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

Zacks Equity Research

iQIYI, Inc. Sponsored ADR (IQ) closed the most recent trading day at $19.11, moving +0.74% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.47%. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq added 0.85%.

Heading into today, shares of the company had gained 5.33% over the past month, outpacing the Consumer Discretionary sector's loss of 0.32% and the S&P 500's gain of 2.08% in that time.

Wall Street will be looking for positivity from IQ as it approaches its next earnings report date. In that report, analysts expect IQ to post earnings of -$0.39 per share. This would mark year-over-year growth of 13.33%. Our most recent consensus estimate is calling for quarterly revenue of $1.04 billion, up 11.5% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.38 per share and revenue of $4.64 billion. These totals would mark changes of +44.13% and +24.26%, respectively, from last 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. IQ is holding a Zacks Rank of #3 (Hold) right now.

The Film and Television Production and Distribution industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 9% 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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