In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $115.63, marking a +0.64% move from the previous day. This move outpaced the S&P 500's daily gain of 0.02%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.17%.
Coming into today, shares of the web search company had gained 0.78% in the past month. In that same time, the Computer and Technology sector gained 6.42%, while the S&P 500 gained 4.82%.
BIDU will be looking to display strength as it nears its next earnings release. On that day, BIDU is projected to report earnings of $1.15 per share, which would represent a year-over-year decline of 63.84%. Our most recent consensus estimate is calling for quarterly revenue of $3.80 billion, down 3.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.30 per share and revenue of $15.86 billion. These totals would mark changes of -45.02% and +3.51%, respectively, from last year.
Any recent changes to analyst estimates for BIDU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.85% higher. 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 21.68 right now. For comparison, its industry has an average Forward P/E of 29.97, which means BIDU is trading at a discount to the group.
Meanwhile, BIDU's PEG ratio is currently 2.76. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.88 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.