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Baidu Inc. (BIDU) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $150.92, marking a -1.89% move from the previous day. This change lagged the S&P 500's 1.44% gain on the day. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 5.21%.
Prior to today's trading, shares of the web search company had gained 2.39% over the past month. This has lagged the Computer and Technology sector's gain of 8.79% and outpaced the S&P 500's gain of 2.28% 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 $2.60 per share, which would represent year-over-year growth of 46.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.48 billion, down 0.01% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.53 per share and revenue of $20.13 billion. These totals would mark changes of +35.01% and +10.14%, respectively, from last year.
Any recent changes to analyst estimates for Baidu Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Baidu Inc. is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Baidu Inc. is currently trading at a Forward P/E ratio of 13.34. This represents a discount compared to its industry's average Forward P/E of 25.94.
Investors should also note that BIDU has a PEG ratio of 0.7 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. BIDU's industry had an average PEG ratio of 1.4 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 76, putting it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Baidu Inc. (BIDU) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $150.92, marking a -1.89% move from the previous day. This change lagged the S&P 500's 1.44% gain on the day. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 5.21%.
Prior to today's trading, shares of the web search company had gained 2.39% over the past month. This has lagged the Computer and Technology sector's gain of 8.79% and outpaced the S&P 500's gain of 2.28% 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 $2.60 per share, which would represent year-over-year growth of 46.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.48 billion, down 0.01% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.53 per share and revenue of $20.13 billion. These totals would mark changes of +35.01% and +10.14%, respectively, from last year.
Any recent changes to analyst estimates for Baidu Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Baidu Inc. is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Baidu Inc. is currently trading at a Forward P/E ratio of 13.34. This represents a discount compared to its industry's average Forward P/E of 25.94.
Investors should also note that BIDU has a PEG ratio of 0.7 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. BIDU's industry had an average PEG ratio of 1.4 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 76, putting it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.