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Baidu Inc. (BIDU) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $107.91, marking a +1.21% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.25%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 0.35%.
Prior to today's trading, shares of the web search company had lost 19.87% over the past month. This has lagged the Computer and Technology sector's loss of 13.61% and the S&P 500's loss of 11.03% in that time.
Investors will be hoping for strength from Baidu Inc. as it approaches 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%. Our most recent consensus estimate is calling for quarterly revenue of $4.46 billion, up 3.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.24 per share and revenue of $21.18 billion, which would represent changes of -1.9% and +9.79%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Baidu Inc.These recent revisions tend to reflect the evolving nature of short-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. 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. Baidu Inc. currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Baidu Inc. has a Forward P/E ratio of 12.94 right now. This valuation marks a discount compared to its industry's average Forward P/E of 19.51.
We can also see that BIDU currently has a PEG ratio of 7.11. 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 1.97 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 154, which puts it in the bottom 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Baidu Inc. (BIDU) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $107.91, marking a +1.21% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.25%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 0.35%.
Prior to today's trading, shares of the web search company had lost 19.87% over the past month. This has lagged the Computer and Technology sector's loss of 13.61% and the S&P 500's loss of 11.03% in that time.
Investors will be hoping for strength from Baidu Inc. as it approaches 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%. Our most recent consensus estimate is calling for quarterly revenue of $4.46 billion, up 3.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.24 per share and revenue of $21.18 billion, which would represent changes of -1.9% and +9.79%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Baidu Inc.These recent revisions tend to reflect the evolving nature of short-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. 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. Baidu Inc. currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Baidu Inc. has a Forward P/E ratio of 12.94 right now. This valuation marks a discount compared to its industry's average Forward P/E of 19.51.
We can also see that BIDU currently has a PEG ratio of 7.11. 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 1.97 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 154, which puts it in the bottom 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.