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Baidu Inc. (BIDU) Gains But Lags Market: What You Should Know
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Baidu Inc. (BIDU - Free Report) closed at $116.04 in the latest trading session, marking a +0.23% move from the prior day. The stock lagged the S&P 500's daily gain of 0.38%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.73%.
Coming into today, shares of the web search company had gained 2.5% in the past month. In that same time, the Computer and Technology sector gained 2.98%, while the S&P 500 gained 3.19%.
BIDU will be looking to display strength as it nears its next earnings release. On that day, BIDU is projected to report earnings of $1.09 per share, which would represent a year-over-year decline of 65.72%. Our most recent consensus estimate is calling for quarterly revenue of $3.83 billion, down 2.51% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.59 per share and revenue of $16.19 billion, which would represent changes of -42.01% and +5.64%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 6.18% lower. BIDU is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that BIDU has a Forward P/E ratio of 20.71 right now. Its industry sports an average Forward P/E of 28.72, so we one might conclude that BIDU is trading at a discount comparatively.
Meanwhile, BIDU's PEG ratio is currently 2.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.75 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 61, which puts it in the top 24% 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.
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Baidu Inc. (BIDU) Gains But Lags Market: What You Should Know
Baidu Inc. (BIDU - Free Report) closed at $116.04 in the latest trading session, marking a +0.23% move from the prior day. The stock lagged the S&P 500's daily gain of 0.38%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.73%.
Coming into today, shares of the web search company had gained 2.5% in the past month. In that same time, the Computer and Technology sector gained 2.98%, while the S&P 500 gained 3.19%.
BIDU will be looking to display strength as it nears its next earnings release. On that day, BIDU is projected to report earnings of $1.09 per share, which would represent a year-over-year decline of 65.72%. Our most recent consensus estimate is calling for quarterly revenue of $3.83 billion, down 2.51% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.59 per share and revenue of $16.19 billion, which would represent changes of -42.01% and +5.64%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 6.18% lower. BIDU is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that BIDU has a Forward P/E ratio of 20.71 right now. Its industry sports an average Forward P/E of 28.72, so we one might conclude that BIDU is trading at a discount comparatively.
Meanwhile, BIDU's PEG ratio is currently 2.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.75 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 61, which puts it in the top 24% 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.