Baidu Inc. (BIDU) Stock Moves -0.73%: What You Should Know
Baidu Inc. (BIDU) closed at $132.95 in the latest trading session, marking a -0.73% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.86%. Meanwhile, the Dow lost 2.3%, and the Nasdaq, a tech-heavy index, lost 1.64%.
Heading into today, shares of the web search company had gained 8.22% over the past month, lagging the Computer and Technology sector's gain of 9.23% and outpacing the S&P 500's gain of 7.63% in that time.
Wall Street will be looking for positivity from BIDU as it approaches its next earnings report date. In that report, analysts expect BIDU to post earnings of $1.84 per share. This would mark year-over-year growth of 4.55%. Our most recent consensus estimate is calling for quarterly revenue of $3.91 billion, down 0.61% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.13 per share and revenue of $15.09 billion, which would represent changes of -4.68% and -2.71%, respectively, from the prior year.
Any recent changes to analyst estimates for BIDU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 6.88% lower. BIDU is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that BIDU has a Forward P/E ratio of 18.77 right now. Its industry sports an average Forward P/E of 38.64, so we one might conclude that BIDU is trading at a discount comparatively.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.