In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $108.89, marking a -0.23% move from the previous day. This move lagged the S&P 500's daily gain of 0.61%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.53%.
Coming into today, shares of the web search company had lost 31.61% in the past month. In that same time, the Computer and Technology sector lost 8.25%, while the S&P 500 lost 3.77%.
BIDU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.13, down 64.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.85 billion, down 2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.66 per share and revenue of $16.33 billion. These totals would mark changes of -41.29% and +6.54%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for BIDU. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 44.37% lower. BIDU is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that BIDU has a Forward P/E ratio of 19.28 right now. For comparison, its industry has an average Forward P/E of 30.16, which means BIDU is trading at a discount to the group.
Also, we should mention that BIDU has a PEG ratio of 2.46. 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. BIDU's industry had an average PEG ratio of 2.85 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.