For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Baidu (BIDU - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Baidu is one of 630 companies in the Computer and Technology group. The Computer and Technology group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. BIDU is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for BIDU's full-year earnings has moved 9.18% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, BIDU has gained about 7.07% so far this year. At the same time, Computer and Technology stocks have gained an average of 6.01%. This means that Baidu is outperforming the sector as a whole this year.
Looking more specifically, BIDU belongs to the Internet - Services industry, which includes 43 individual stocks and currently sits at #70 in the Zacks Industry Rank. This group has lost an average of 1.24% so far this year, so BIDU is performing better in this area.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to BIDU as it looks to continue its solid performance.