In the latest close session, Baidu Inc. (BIDU) was up +1.61% at $143.54. The stock's change was more than the S&P 500's daily gain of 0.65%. On the other hand, the Dow registered a gain of 0.48%, and the technology-centric Nasdaq increased by 0.82%.
Shares of the web search company witnessed a gain of 10.09% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1.6%, and the S&P 500's gain of 1.15%.
The upcoming earnings release of Baidu Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $1.53, marking a 41.83% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.62 billion, down 1.09% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.07 per share and revenue of $18.2 billion. These totals would mark changes of -32.86% and 0%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Baidu Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Baidu Inc. currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Baidu Inc. is currently exchanging hands at a Forward P/E ratio of 14.72. For comparison, its industry has an average Forward P/E of 17.69, which means Baidu Inc. is trading at a discount to the group.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 100, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Baidu, Inc. (BIDU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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