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Baidu Inc. (BIDU) Outpaces Stock Market Gains: What You Should Know

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Baidu Inc. (BIDU - Free Report) closed the most recent trading day at $165.37, moving +1.91% from the previous trading session. This change outpaced the S&P 500's 0.65% gain on the day.

Heading into today, shares of the web search company had gained 8.32% over the past month, outpacing the Computer and Technology sector's gain of 6% and the S&P 500's gain of 6.38% in that time.

Wall Street will be looking for positivity from BIDU as it approaches its next earnings report date. This is expected to be November 17, 2021. On that day, BIDU is projected to report earnings of $1.99 per share, which would represent a year-over-year decline of 33.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.91 billion, up 18.16% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.35 per share and revenue of $19.39 billion. These totals would mark changes of -14.8% and +23.81%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for BIDU. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BIDU currently has a Zacks Rank of #3 (Hold).

Investors should also note BIDU's current valuation metrics, including its Forward P/E ratio of 19.44. This valuation marks a discount compared to its industry's average Forward P/E of 27.09.

It is also worth noting that BIDU currently has a PEG ratio of 10.68. 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. BIDU's industry had an average PEG ratio of 4.15 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 145, 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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