Baidu Inc. (BIDU - Free Report) closed the most recent trading day at $113.09, moving -1.98% from the previous trading session. This change lagged the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.38%.
Prior to today's trading, shares of the web search company had lost 24.29% over the past month. This has lagged the Computer and Technology sector's loss of 1.9% and the S&P 500's gain of 0.33% in that time.
Investors will be hoping for strength from BIDU as it approaches its next earnings release. On that day, BIDU is projected to report earnings of $1.13 per share, which would represent a year-over-year decline of 64.47%. 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 revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 44.37% lower. BIDU is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that BIDU has a Forward P/E ratio of 20.38 right now. Its industry sports an average Forward P/E of 27.68, so we one might conclude that BIDU is trading at a discount comparatively.
Also, we should mention that BIDU has a PEG ratio of 2.6. 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 industry currently had an average PEG ratio of 2.93 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 69, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.