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Baidu Inc. (BIDU) Stock Sinks As Market Gains: What You Should Know
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Baidu Inc. (BIDU - Free Report) closed the most recent trading day at $140.60, moving -0.29% from the previous trading session. This change lagged the S&P 500's 1.21% gain on the day. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the web search company had lost 6.81% over the past month, lagging the Computer and Technology sector's gain of 2.22% and the S&P 500's gain of 3.2% in that time.
Wall Street will be looking for positivity from Baidu Inc. as it approaches its next earnings report date. On that day, Baidu Inc. is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 31.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.12 billion, down 15.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.88 per share and revenue of $19.67 billion. These totals would mark changes of -6.19% and +1.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Baidu Inc.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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 has moved 10.55% lower. Baidu Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Baidu Inc. is currently trading at a Forward P/E ratio of 17.9. Its industry sports an average Forward P/E of 21.23, 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 0.86 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 132, which puts it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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Baidu Inc. (BIDU) Stock Sinks As Market Gains: What You Should Know
Baidu Inc. (BIDU - Free Report) closed the most recent trading day at $140.60, moving -0.29% from the previous trading session. This change lagged the S&P 500's 1.21% gain on the day. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the web search company had lost 6.81% over the past month, lagging the Computer and Technology sector's gain of 2.22% and the S&P 500's gain of 3.2% in that time.
Wall Street will be looking for positivity from Baidu Inc. as it approaches its next earnings report date. On that day, Baidu Inc. is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 31.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.12 billion, down 15.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.88 per share and revenue of $19.67 billion. These totals would mark changes of -6.19% and +1.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Baidu Inc.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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 has moved 10.55% lower. Baidu Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Baidu Inc. is currently trading at a Forward P/E ratio of 17.9. Its industry sports an average Forward P/E of 21.23, 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 0.86 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 132, which puts it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.