In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $228.68, marking a -0.78% move from the previous day. This move lagged the S&P 500's daily of 0%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.06%.
Coming into today, shares of the web search company had gained 2.77% in the past month. In that same time, the Computer and Technology sector lost 0.1%, while the S&P 500 gained 0.78%.
BIDU will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2018. In that report, analysts expect BIDU to post earnings of $2.46 per share. This would mark a year-over-year decline of 36.76%. Meanwhile, our latest consensus estimate is calling for revenue of $4.22 billion, up 19.54% from the prior-year quarter.
BIDU's full-year Zacks Consensus Estimates are calling for earnings of $12.14 per share and revenue of $15.64 billion. These results would represent year-over-year changes of +24% and +23.35%, respectively.
It is also important to note the recent changes to analyst estimates for BIDU. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. BIDU currently has a Zacks Rank of #3 (Hold).
Digging into valuation, BIDU currently has a Forward P/E ratio of 18.99. For comparison, its industry has an average Forward P/E of 34.73, which means BIDU is trading at a discount to the group.
It is also worth noting that BIDU currently has a PEG ratio of 1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Services stocks are, on average, holding a PEG ratio of 2.61 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 151, putting it in the bottom 41% 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.
To follow BIDU in the coming trading sessions, be sure to utilize Zacks.com.