Back to top

Image: Bigstock

IQIYI, Inc. Sponsored ADR (IQ) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

iQIYI, Inc. Sponsored ADR (IQ - Free Report) closed the most recent trading day at $21.98, moving +0.37% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.11%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.19%.

Heading into today, shares of the company had lost 3.61% over the past month, lagging the Consumer Discretionary sector's gain of 8% and the S&P 500's gain of 4.42% in that time.

Investors will be hoping for strength from IQ as it approaches its next earnings release, which is expected to be May 16, 2019. On that day, IQ is projected to report earnings of -$0.52 per share, which would represent year-over-year growth of 76.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.03 billion, up 33.67% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.64 per share and revenue of $5.02 billion. These totals would mark changes of +33.6% and +34.47%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for IQ. Recent revisions tend to reflect the latest 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.38% higher. IQ is currently sporting a Zacks Rank of #2 (Buy).

The Film and Television Production and Distribution industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


iQIYI, Inc. Sponsored ADR (IQ) - free report >>

Published in