Baidu Inc. (BIDU) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Baidu Inc. (BIDU) closed at $122.77, marking a -0.53% move from the previous day. This change lagged the S&P 500's 0.29% gain on the day. Elsewhere, the Dow lost 0.24%, while the tech-heavy Nasdaq added 0.28%.
Heading into today, shares of the web search company had lost 0.02% over the past month, lagging the Computer and Technology sector's gain of 4.98% and the S&P 500's gain of 2.96% 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 $1.42 per share. This would mark a year-over-year decline of 3.4%. Our most recent consensus estimate is calling for quarterly revenue of $3.43 billion, down 10.45% from the year-ago period.
BIDU's full-year Zacks Consensus Estimates are calling for earnings of $6.50 per share and revenue of $15.76 billion. These results would represent year-over-year changes of -13.1% and +1.63%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. BIDU is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note BIDU's current valuation metrics, including its Forward P/E ratio of 18.99. This valuation marks a discount compared to its industry's average Forward P/E of 34.53.
Meanwhile, BIDU's PEG ratio is currently 2.71. 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 was holding an average PEG ratio of 2.71 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 40% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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