Back to top

Image: Bigstock

Baidu Inc. (BIDU) Advances While Market Declines: Some Information for Investors

Read MoreHide Full Article

Baidu Inc. (BIDU - Free Report) ended the recent trading session at $118.32, demonstrating a +0.54% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.34% loss on the day. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq decreased by 0.56%.

Shares of the web search company witnessed a gain of 3.8% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.27% and the S&P 500's gain of 2.56%.

Analysts and investors alike will be keeping a close eye on the performance of Baidu Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $2.90, up 31.22% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.98 billion, reflecting a 3.89% rise from the equivalent quarter last year.

Investors might also notice recent changes to analyst estimates for Baidu Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Baidu Inc. is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Baidu Inc.'s current valuation metrics, including its Forward P/E ratio of 8.61. This valuation marks a discount compared to its industry's average Forward P/E of 24.19.

One should further note that BIDU currently holds a PEG ratio of 0.18. 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 industry had an average PEG ratio of 2 as trading concluded yesterday.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Baidu, Inc. (BIDU) - free report >>

Published in