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Baidu Inc. (BIDU) Gains As Market Dips: What You Should Know

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In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $161.63, marking a +0.13% move from the previous day. This change outpaced the S&P 500's 0.35% loss on the day.

Prior to today's trading, shares of the web search company had lost 0.46% over the past month. This has lagged the Computer and Technology sector's gain of 8.33% and the S&P 500's gain of 7.11% 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. In that report, analysts expect BIDU to post earnings of $1.99 per share. This would mark a year-over-year decline of 33.67%. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 billion, up 18.16% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.35 per share and revenue of $19.39 billion, which would represent changes of -14.8% and +23.81%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for BIDU. These revisions help to show the ever-changing nature of near-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. 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 remained stagnant. BIDU currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that BIDU has a Forward P/E ratio of 19.34 right now. This valuation marks a discount compared to its industry's average Forward P/E of 27.69.

Also, we should mention that BIDU has a PEG ratio of 10.63. 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 3.09 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 175, which puts it in the bottom 32% 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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