Baidu Inc. (BIDU - Free Report) closed the most recent trading day at $162.06, moving -1.48% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.65%. At the same time, the Dow lost 1.79%, and the tech-heavy Nasdaq lost 1.96%.
Heading into today, shares of the web search company had lost 10.97% over the past month, lagging the Computer and Technology sector's gain of 1.89% and the S&P 500's gain of 1.53% in that time.
Investors will be hoping for strength from BIDU as it approaches its next earnings release, which is expected to be May 16, 2019. On that day, BIDU is projected to report earnings of $0.54 per share, which would represent a year-over-year decline of 79.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.61 billion, up 8.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.61 per share and revenue of $17.75 billion. These totals would mark changes of -21.06% and +15.83%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BIDU. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 35.3% lower. BIDU is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, BIDU currently has a Forward P/E ratio of 21.62. This represents a discount compared to its industry's average Forward P/E of 35.27.
Meanwhile, BIDU's PEG ratio is currently 2.76. 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. Internet - Services stocks are, on average, holding a PEG ratio of 3.86 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 178, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.