In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $118, marking a -1.52% move from the previous day. This change lagged the S&P 500's 0.38% loss on the day. Elsewhere, the Dow lost 0.85%, while the tech-heavy Nasdaq added 0.43%.
Heading into today, shares of the web search company had lost 0.67% over the past month, lagging the Computer and Technology sector's gain of 6.92% and the S&P 500's gain of 6.78% in that time.
BIDU will be looking to display strength as it nears its next earnings release. In that report, analysts expect BIDU to post earnings of $1.39 per share. This would mark a year-over-year decline of 5.44%. Meanwhile, our latest consensus estimate is calling for revenue of $3.44 billion, down 10.42% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.40 per share and revenue of $15.70 billion. These totals would mark changes of -14.44% and +1.22%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BIDU. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BIDU currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that BIDU has a Forward P/E ratio of 18.72 right now. This represents a discount compared to its industry's average Forward P/E of 33.08.
Investors should also note that BIDU has a PEG ratio of 2.67 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BIDU's industry had an average PEG ratio of 2.5 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 114, which puts it in the top 45% 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.