In the latest trading session, Baidu Inc. BIDU closed at $228.61, marking a +1.81% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.77%. Elsewhere, the Dow gained 1.01%, while the tech-heavy Nasdaq added 0.91%.
Heading into today, shares of the web search company had lost 13.82% over the past month, lagging the Computer and Technology sector's gain of 0.72% and the S&P 500's gain of 2.11% in that time.
Investors will be hoping for strength from BIDU as it approaches its next earnings release, which is expected to be October 25, 2018. On that day, BIDU is projected to report earnings of $2.54 per share, which would represent a year-over-year decline of 34.7%. Meanwhile, our latest consensus estimate is calling for revenue of $4.18 billion, up 18.55% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.57 per share and revenue of $15.60 billion. These totals would mark changes of +18.18% and +22.98%, respectively, from last year.
It is also important to note the 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.
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.
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 20.08% higher. BIDU is currently a Zacks Rank #3 (Hold).
In terms of valuation, BIDU is currently trading at a Forward P/E ratio of 21.32. This represents a discount compared to its industry's average Forward P/E of 33.83.
We can also see that BIDU currently has a PEG ratio of 1.21. 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 3.6 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 35% 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.