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Baidu Inc. (BIDU) Rises Higher Than Market: Key Facts

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The latest trading session saw Baidu Inc. (BIDU - Free Report) ending at $83.69, denoting a +0.93% adjustment from its last day's close. This change outpaced the S&P 500's 0.88% gain on the day. Meanwhile, the Dow gained 1.24%, and the Nasdaq, a tech-heavy index, added 0.65%.

Shares of the web search company have depreciated by 6.26% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17%.

Investors will be eagerly watching for the performance of Baidu Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 18, 2025. It is anticipated that the company will report an EPS of $1.78, marking a 42.21% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.56 billion, down 7.31% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Baidu Inc. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 1.74% lower within the past month. Baidu Inc. is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, Baidu Inc. currently has a Forward P/E ratio of 8.98. This signifies a discount in comparison to the average Forward P/E of 22.25 for its industry.

Investors should also note that BIDU has a PEG ratio of 1.51 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.56.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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