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Baidu Inc. (BIDU) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Baidu Inc. (BIDU - Free Report) reached $106.46, with a -1.3% movement compared to the previous day. This change lagged the S&P 500's 1.26% loss on the day. Elsewhere, the Dow saw a downswing of 0.86%, while the tech-heavy Nasdaq depreciated by 1.54%.

The web search company's stock has dropped by 15.73% in the past month, falling short of the Computer and Technology sector's loss of 2.39% and the S&P 500's loss of 3.67%.

Analysts and investors alike will be keeping a close eye on the performance of Baidu Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.92, indicating a 23.21% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.91 billion, indicating a 7.31% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $10.67 per share and a revenue of $18.76 billion, demonstrating changes of +24.94% and +2.64%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Baidu Inc. Such recent modifications usually signify the changing landscape of near-term business trends. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Baidu Inc. boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Baidu Inc. is currently exchanging hands at a Forward P/E ratio of 10.11. This represents a discount compared to its industry's average Forward P/E of 25.01.

We can additionally observe that BIDU currently boasts a PEG ratio of 0.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services industry currently had an average PEG ratio of 1.88 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 100, putting it in the top 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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