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Baidu Inc. (BIDU) Increases Yet Falls Behind Market: What Investors Need to Know

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In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $83.01, marking a +0.75% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.04% for the day. On the other hand, the Dow registered a gain of 0.76%, and the technology-centric Nasdaq increased by 1.03%.

Shares of the web search company witnessed a loss of 6.32% over the previous month, beating the performance of the Computer and Technology sector with its loss of 13.91% and the S&P 500's loss of 6.74%.

Analysts and investors alike will be keeping a close eye on the performance of Baidu Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on August 22, 2024. The company's earnings per share (EPS) are projected to be $2.68, reflecting a 13.83% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.74 billion, up 0.84% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.18 per share and a revenue of $19.23 billion, signifying shifts of -1.84% and +1.87%, respectively, from the 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection has moved 1.64% lower. Baidu Inc. is currently a Zacks Rank #4 (Sell).

In terms of valuation, Baidu Inc. is presently being traded at a Forward P/E ratio of 7.37. This signifies a discount in comparison to the average Forward P/E of 21.09 for its industry.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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