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 $124.74, demonstrating a +1.12% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, lost 0.09%.

The web search company's stock has climbed by 6.03% in the past month, exceeding the Computer and Technology sector's gain of 1.66% and the S&P 500's gain of 2.57%.

Market participants will be closely following the financial results of Baidu Inc. in its upcoming release. The company is expected to report EPS of $1.5, down 42.97% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.62 billion, down 1.09% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.16 per share and a revenue of $18.2 billion, representing changes of -32% and -1.59%, respectively, from the prior year.

Any recent changes to analyst estimates for Baidu Inc. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Baidu Inc. is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Baidu Inc. is currently being traded at a Forward P/E ratio of 17.23. This denotes a discount relative to the industry average Forward P/E of 19.6.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


See More Zacks Research for These Tickers


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


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

Published in