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Baidu Inc. (BIDU) Stock Sinks As Market Gains: What You Should Know
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Baidu Inc. (BIDU - Free Report) closed at $136.52 in the latest trading session, marking a -1.51% move from the prior day. This change lagged the S&P 500's 0.34% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 8.98%.
Heading into today, shares of the web search company had gained 16.27% over the past month, outpacing the Computer and Technology sector's loss of 0.17% and the S&P 500's gain of 1% in that time.
Wall Street will be looking for positivity from Baidu Inc. as it approaches its next earnings report date. On that day, Baidu Inc. is projected to report earnings of $2.63 per share, which would represent year-over-year growth of 44.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.76 billion, down 8.37% from the year-ago period.
Any recent changes to analyst estimates for Baidu Inc. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 11.34% higher. Baidu Inc. currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Baidu Inc. is currently trading at a Forward P/E ratio of 11.97. This valuation marks a discount compared to its industry's average Forward P/E of 23.88.
Meanwhile, BIDU's PEG ratio is currently 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 1.7 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Baidu Inc. (BIDU) Stock Sinks As Market Gains: What You Should Know
Baidu Inc. (BIDU - Free Report) closed at $136.52 in the latest trading session, marking a -1.51% move from the prior day. This change lagged the S&P 500's 0.34% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 8.98%.
Heading into today, shares of the web search company had gained 16.27% over the past month, outpacing the Computer and Technology sector's loss of 0.17% and the S&P 500's gain of 1% in that time.
Wall Street will be looking for positivity from Baidu Inc. as it approaches its next earnings report date. On that day, Baidu Inc. is projected to report earnings of $2.63 per share, which would represent year-over-year growth of 44.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.76 billion, down 8.37% from the year-ago period.
Any recent changes to analyst estimates for Baidu Inc. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 11.34% higher. Baidu Inc. currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Baidu Inc. is currently trading at a Forward P/E ratio of 11.97. This valuation marks a discount compared to its industry's average Forward P/E of 23.88.
Meanwhile, BIDU's PEG ratio is currently 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 1.7 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.