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Baidu Inc. (BIDU) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $199.98, marking a -2.42% move from the previous day. This change lagged the S&P 500's daily loss of 0.67%.

BIDU will be looking to display strength as it nears its next earnings release, which is expected to be May 18, 2021. The company is expected to report EPS of $1.46, up 16.8% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.17 billion, up 30.88% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.05 per share and revenue of $19.44 billion, which would represent changes of +2.55% and +24.07%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BIDU. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 has moved 6.9% lower within the past month. BIDU is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, BIDU is currently trading at a Forward P/E ratio of 20.39. This represents a discount compared to its industry's average Forward P/E of 28.17.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% 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.

To follow BIDU in the coming trading sessions, be sure to utilize Zacks.com.


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