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Baidu Inc. (BIDU) Stock Sinks As Market Gains: Here's Why
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In the latest close session, Baidu Inc. (BIDU - Free Report) was down 1.47% at $85.59. The stock trailed the S&P 500, which registered a daily gain of 0.2%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.04%.
The web search company's shares have seen a decrease of 7.92% over the last month, not keeping up with the Computer and Technology sector's gain of 4.78% and the S&P 500's loss of 0.35%.
Investors will be eagerly watching for the performance of Baidu Inc. in its upcoming earnings disclosure. On that day, Baidu Inc. is projected to report earnings of $1.42 per share, which would represent a year-over-year decline of 8.97%. Meanwhile, our latest consensus estimate is calling for revenue of $4.56 billion, up 4.02% from the prior-year quarter.
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.
It's also important for investors to be aware of any recent modifications 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Baidu Inc. possesses a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Baidu Inc. has a Forward P/E ratio of 15.35 right now. This expresses a discount compared to the average Forward P/E of 15.51 of its industry.
We can additionally observe that BIDU currently boasts a PEG ratio of 2.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services industry had an average PEG ratio of 1.69 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 194, finds itself in the bottom 22% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Baidu Inc. (BIDU) Stock Sinks As Market Gains: Here's Why
In the latest close session, Baidu Inc. (BIDU - Free Report) was down 1.47% at $85.59. The stock trailed the S&P 500, which registered a daily gain of 0.2%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.04%.
The web search company's shares have seen a decrease of 7.92% over the last month, not keeping up with the Computer and Technology sector's gain of 4.78% and the S&P 500's loss of 0.35%.
Investors will be eagerly watching for the performance of Baidu Inc. in its upcoming earnings disclosure. On that day, Baidu Inc. is projected to report earnings of $1.42 per share, which would represent a year-over-year decline of 8.97%. Meanwhile, our latest consensus estimate is calling for revenue of $4.56 billion, up 4.02% from the prior-year quarter.
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.
It's also important for investors to be aware of any recent modifications 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Baidu Inc. possesses a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Baidu Inc. has a Forward P/E ratio of 15.35 right now. This expresses a discount compared to the average Forward P/E of 15.51 of its industry.
We can additionally observe that BIDU currently boasts a PEG ratio of 2.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services industry had an average PEG ratio of 1.69 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 194, finds itself in the bottom 22% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.