Yahoo Finance Baidu Inc. (BIDU) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Baidu Inc. (BIDU) closed at $131.18, marking a -0.27% move from the previous day. This change lagged the S&P 500's 0.09% gain on the day. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 2.51%.
Heading into today, shares of the web search company had lost 12.41% over the past month, lagging the Computer and Technology sector's gain of 4% and the S&P 500's gain of 6.17% in that time.
Investors will be hoping for strength from Baidu Inc. as it approaches its next earnings release. The company is expected to report EPS of $2.22, up 25.42% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.45 billion, down 0.73% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.54 per share and revenue of $19.97 billion, which would represent changes of +35.13% and +9.25%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Baidu Inc.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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Baidu Inc. currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Baidu Inc. is holding a Forward P/E ratio of 11.4. This valuation marks a discount compared to its industry's average Forward P/E of 23.37.
We can also see that BIDU currently has a PEG ratio of 0.6. 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 1.47 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 95, putting it in the top 38% 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.
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Baidu, Inc. (BIDU) : Free Stock Analysis Report
