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Baidu Inc. (BIDU) Suffers a Larger Drop Than the General Market: Key Insights
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Baidu Inc. (BIDU - Free Report) closed at $88.08 in the latest trading session, marking a -1.89% move from the prior day. This move lagged the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.01%.
Heading into today, shares of the web search company had lost 3.73% over the past month, lagging the Computer and Technology sector's gain of 5.26% and the S&P 500's gain of 0.53%.
The investment community will be paying close attention to the earnings performance of Baidu Inc. in its upcoming release. It is anticipated that the company will report an EPS of $1.42, marking a 8.97% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.56 billion, indicating a 4.02% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.66 per share and revenue of $18.88 billion, indicating changes of -25.92% and +4.31%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Baidu Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Baidu Inc. is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Baidu Inc.'s current valuation metrics, including its Forward P/E ratio of 15.86. This represents a premium compared to its industry average Forward P/E of 15.8.
We can also see that BIDU currently has a PEG ratio of 3.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Services stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Baidu Inc. (BIDU) Suffers a Larger Drop Than the General Market: Key Insights
Baidu Inc. (BIDU - Free Report) closed at $88.08 in the latest trading session, marking a -1.89% move from the prior day. This move lagged the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.01%.
Heading into today, shares of the web search company had lost 3.73% over the past month, lagging the Computer and Technology sector's gain of 5.26% and the S&P 500's gain of 0.53%.
The investment community will be paying close attention to the earnings performance of Baidu Inc. in its upcoming release. It is anticipated that the company will report an EPS of $1.42, marking a 8.97% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.56 billion, indicating a 4.02% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.66 per share and revenue of $18.88 billion, indicating changes of -25.92% and +4.31%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Baidu Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Baidu Inc. is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Baidu Inc.'s current valuation metrics, including its Forward P/E ratio of 15.86. This represents a premium compared to its industry average Forward P/E of 15.8.
We can also see that BIDU currently has a PEG ratio of 3.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Services stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.