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Baidu Inc. (BIDU) Dips More Than Broader Markets: What You Should Know
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Baidu Inc. (BIDU - Free Report) closed at $135.34 in the latest trading session, marking a -1.64% move from the prior day. This change lagged the S&P 500's daily loss of 1.16%. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 1.14%.
Heading into today, shares of the web search company had lost 8.07% over the past month, lagging the Computer and Technology sector's loss of 2.82% and the S&P 500's loss of 0.27% in that time.
Baidu Inc. will be looking to display strength as it nears its next earnings release, which is expected to be August 22, 2023. On that day, Baidu Inc. is projected to report earnings of $2.57 per share, which would represent year-over-year growth of 8.9%. Meanwhile, our latest consensus estimate is calling for revenue of $4.66 billion, up 5.27% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.51 per share and revenue of $19.16 billion, which would represent changes of +23.07% and +4.8%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Baidu Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Baidu Inc. is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Baidu Inc. is holding a Forward P/E ratio of 13.1. For comparison, its industry has an average Forward P/E of 32.46, 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 0.27. 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 industry currently had an average PEG ratio of 2.3 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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.
To follow BIDU in the coming trading sessions, be sure to utilize Zacks.com.
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Baidu Inc. (BIDU) Dips More Than Broader Markets: What You Should Know
Baidu Inc. (BIDU - Free Report) closed at $135.34 in the latest trading session, marking a -1.64% move from the prior day. This change lagged the S&P 500's daily loss of 1.16%. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 1.14%.
Heading into today, shares of the web search company had lost 8.07% over the past month, lagging the Computer and Technology sector's loss of 2.82% and the S&P 500's loss of 0.27% in that time.
Baidu Inc. will be looking to display strength as it nears its next earnings release, which is expected to be August 22, 2023. On that day, Baidu Inc. is projected to report earnings of $2.57 per share, which would represent year-over-year growth of 8.9%. Meanwhile, our latest consensus estimate is calling for revenue of $4.66 billion, up 5.27% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.51 per share and revenue of $19.16 billion, which would represent changes of +23.07% and +4.8%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Baidu Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Baidu Inc. is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Baidu Inc. is holding a Forward P/E ratio of 13.1. For comparison, its industry has an average Forward P/E of 32.46, 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 0.27. 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 industry currently had an average PEG ratio of 2.3 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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.
To follow BIDU in the coming trading sessions, be sure to utilize Zacks.com.