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Baidu Inc. (BIDU) Gains But Lags Market: What You Should Know
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In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $120.55, marking a +1.71% move from the previous day. The stock lagged the S&P 500's daily gain of 2.48%. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the web search company had lost 17.6% over the past month. This has lagged the Computer and Technology sector's loss of 13.99% and the S&P 500's loss of 7.81% in that time.
Baidu Inc. will be looking to display strength as it nears its next earnings release. On that day, Baidu Inc. is projected to report earnings of $0.82 per share, which would represent a year-over-year decline of 56.61%. Meanwhile, our latest consensus estimate is calling for revenue of $4.46 billion, up 3.9% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.24 per share and revenue of $21.18 billion. These totals would mark changes of -1.9% and +9.79%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Baidu Inc.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.64% lower. Baidu Inc. is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that Baidu Inc. has a Forward P/E ratio of 14.38 right now. Its industry sports an average Forward P/E of 19.65, so we one might conclude that Baidu Inc. is trading at a discount comparatively.
Investors should also note that BIDU has a PEG ratio of 7.9 right now. 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 2.01 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.
View the Zacks #1 Rank List
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Baidu Inc. (BIDU) Gains But Lags Market: What You Should Know
In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $120.55, marking a +1.71% move from the previous day. The stock lagged the S&P 500's daily gain of 2.48%. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the web search company had lost 17.6% over the past month. This has lagged the Computer and Technology sector's loss of 13.99% and the S&P 500's loss of 7.81% in that time.
Baidu Inc. will be looking to display strength as it nears its next earnings release. On that day, Baidu Inc. is projected to report earnings of $0.82 per share, which would represent a year-over-year decline of 56.61%. Meanwhile, our latest consensus estimate is calling for revenue of $4.46 billion, up 3.9% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.24 per share and revenue of $21.18 billion. These totals would mark changes of -1.9% and +9.79%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Baidu Inc.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.64% lower. Baidu Inc. is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that Baidu Inc. has a Forward P/E ratio of 14.38 right now. Its industry sports an average Forward P/E of 19.65, so we one might conclude that Baidu Inc. is trading at a discount comparatively.
Investors should also note that BIDU has a PEG ratio of 7.9 right now. 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 2.01 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.