Baidu Inc. (BIDU - Free Report) closed the most recent trading day at $97.70, moving -1.86% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.05%. Meanwhile, the Dow lost 1.89%, and the Nasdaq, a tech-heavy index, lost 2.07%.
BIDU will be looking to display strength as it nears its next earnings release, which is expected to be May 18, 2020. The company is expected to report EPS of $0.64, up 56.1% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.13 billion, down 12.93% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.15 per share and revenue of $16.09 billion, which would represent changes of -4.41% and +3.76%, respectively, from the prior year.
Any recent changes to analyst estimates for BIDU should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 11.95% lower within the past month. BIDU is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, BIDU is currently trading at a Forward P/E ratio of 13.92. Its industry sports an average Forward P/E of 29.93, so we one might conclude that BIDU is trading at a discount comparatively.
Meanwhile, BIDU's PEG ratio is currently 1.55. 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 2.31 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 29, putting it in the top 12% 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.
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