In the latest trading session, Baidu Inc. (BIDU) closed at $132.40, marking a -3.99% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.08%.
Prior to today's trading, shares of the web search company had gained 28.16% outpaced the Computer and Technology sector's gain of 7.19% and the S&P 500's gain of 4.03%.
Investors will be eagerly watching for the performance of Baidu Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.32, marking a 44.3% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.34 billion, indicating a 9.33% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.45 per share and a revenue of $18.31 billion, signifying shifts of -29.25% and -0.99%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Baidu Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 0.98% lower. Baidu Inc. is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Baidu Inc. currently has a Forward P/E ratio of 18.51. Its industry sports an average Forward P/E of 24.61, so one might conclude that Baidu Inc. is trading at a discount comparatively.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Baidu, Inc. (BIDU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
