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Here's Why Baidu Inc. (BIDU) Fell More Than Broader Market
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In the latest close session, Baidu Inc. (BIDU - Free Report) was down 1% at $77.20. This move lagged the S&P 500's daily loss of 0.52%. Meanwhile, the Dow experienced a drop of 1.24%, and the technology-dominated Nasdaq saw a decrease of 0.21%.
The web search company's shares have seen a decrease of 11.47% over the last month, not keeping up with the Computer and Technology sector's loss of 7.7% and the S&P 500's loss of 1.21%.
The upcoming earnings release of Baidu Inc. will be of great interest to investors. The company is expected to report EPS of $1.42, down 8.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.56 billion, up 4.02% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.66 per share and a revenue of $18.88 billion, demonstrating changes of -25.92% and +4.31%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Baidu Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Baidu Inc. holds a Zacks Rank of #3 (Hold).
Investors should also note Baidu Inc.'s current valuation metrics, including its Forward P/E ratio of 13.78. This represents a discount compared to its industry average Forward P/E of 14.91.
Also, we should mention that BIDU has a PEG ratio of 2.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.63.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Here's Why Baidu Inc. (BIDU) Fell More Than Broader Market
In the latest close session, Baidu Inc. (BIDU - Free Report) was down 1% at $77.20. This move lagged the S&P 500's daily loss of 0.52%. Meanwhile, the Dow experienced a drop of 1.24%, and the technology-dominated Nasdaq saw a decrease of 0.21%.
The web search company's shares have seen a decrease of 11.47% over the last month, not keeping up with the Computer and Technology sector's loss of 7.7% and the S&P 500's loss of 1.21%.
The upcoming earnings release of Baidu Inc. will be of great interest to investors. The company is expected to report EPS of $1.42, down 8.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.56 billion, up 4.02% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.66 per share and a revenue of $18.88 billion, demonstrating changes of -25.92% and +4.31%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Baidu Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Baidu Inc. holds a Zacks Rank of #3 (Hold).
Investors should also note Baidu Inc.'s current valuation metrics, including its Forward P/E ratio of 13.78. This represents a discount compared to its industry average Forward P/E of 14.91.
Also, we should mention that BIDU has a PEG ratio of 2.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.63.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.