Baidu Inc. (BIDU - Free Report) closed at $192.44 in the latest trading session, marking a +0.97% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.64%.
Coming into today, shares of the web search company had lost 6.56% in the past month. In that same time, the Computer and Technology sector lost 6.93%, while the S&P 500 lost 4.95%.
BIDU will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2019. The company is expected to report EPS of $2.11, down 7.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.95 billion, up 9.03% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.01 per share and revenue of $15.26 billion, which would represent changes of +2.25% and +20.31%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for BIDU. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has moved 31.72% lower. BIDU is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, BIDU is holding a Forward P/E ratio of 19.05. Its industry sports an average Forward P/E of 34.71, so we one might conclude that BIDU is trading at a discount comparatively.
Meanwhile, BIDU's PEG ratio is currently 0.83. 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. The Internet - Services was holding an average PEG ratio of 2.34 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 31% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.