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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 $122.62, moving -1.87% from the previous trading session. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.
Prior to today's trading, shares of the web search company had lost 20.04% over the past month. This has lagged the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 3.31% in that time.
Wall Street will be looking for positivity from Baidu Inc. as it approaches its next earnings report date. The company is expected to report EPS of $1.93, up 9.04% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.39 billion, down 2.05% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.20 per share and revenue of $19.97 billion. These totals would mark changes of +19.44% and +9.25%, respectively, from last year.
Any recent changes to analyst estimates for Baidu Inc. should also be noted by investors. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 17.51% lower. Baidu Inc. is currently a Zacks Rank #4 (Sell).
Investors should also note Baidu Inc.'s current valuation metrics, including its Forward P/E ratio of 12.25. For comparison, its industry has an average Forward P/E of 23.06, which means Baidu Inc. is trading at a discount to the group.
It is also worth noting that BIDU currently has a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.47 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 149, which puts it in the bottom 41% 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.
To follow BIDU in the coming trading sessions, be sure to utilize 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 $122.62, moving -1.87% from the previous trading session. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.
Prior to today's trading, shares of the web search company had lost 20.04% over the past month. This has lagged the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 3.31% in that time.
Wall Street will be looking for positivity from Baidu Inc. as it approaches its next earnings report date. The company is expected to report EPS of $1.93, up 9.04% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.39 billion, down 2.05% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.20 per share and revenue of $19.97 billion. These totals would mark changes of +19.44% and +9.25%, respectively, from last year.
Any recent changes to analyst estimates for Baidu Inc. should also be noted by investors. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 17.51% lower. Baidu Inc. is currently a Zacks Rank #4 (Sell).
Investors should also note Baidu Inc.'s current valuation metrics, including its Forward P/E ratio of 12.25. For comparison, its industry has an average Forward P/E of 23.06, which means Baidu Inc. is trading at a discount to the group.
It is also worth noting that BIDU currently has a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.47 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 149, which puts it in the bottom 41% 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.
To follow BIDU in the coming trading sessions, be sure to utilize Zacks.com.