In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $102.76, marking a +1.53% move from the previous day. This change outpaced the S&P 500's 0.51% gain on the day. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.75%.
Prior to today's trading, shares of the web search company had lost 3.45% over the past month. This has lagged the Computer and Technology sector's gain of 2.59% and the S&P 500's gain of 3.44% 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 $0.94 per share, which would represent a year-over-year decline of 66.06%. Meanwhile, our latest consensus estimate is calling for revenue of $4.02 billion, down 2.08% from the prior-year quarter.
BIDU's full-year Zacks Consensus Estimates are calling for earnings of $5.20 per share and revenue of $15.67 billion. These results would represent year-over-year changes of -46.06% and +2.25%, respectively.
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. 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. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. BIDU is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that BIDU has a Forward P/E ratio of 19.46 right now. Its industry sports an average Forward P/E of 26.06, so we one might conclude that BIDU is trading at a discount comparatively.
Meanwhile, BIDU's PEG ratio is currently 7.04. 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. The Internet - Services industry currently had an average PEG ratio of 2.46 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 159, putting it in the bottom 38% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.