The latest trading session saw Baidu Inc. (BIDU) ending at $87.91, denoting a +0.1% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.63%. At the same time, the Dow added 0.21%, and the tech-heavy Nasdaq gained 1.52%.
Shares of the web search company have depreciated by 4.47% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.66% and the S&P 500's loss of 0.7%.
Investors will be eagerly watching for the performance of Baidu Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 21, 2025. The company's earnings per share (EPS) are projected to be $1.96, reflecting a 28.99% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.3 billion, reflecting a 1.56% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.08 per share and revenue of $18.8 billion, which would represent changes of -4.27% and +1.65%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Baidu Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. Right now, Baidu Inc. possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Baidu Inc. is presently trading at a Forward P/E ratio of 8.71. This indicates a discount in contrast to its industry's Forward P/E of 18.13.
We can also see that BIDU currently has a PEG ratio of 2.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Services stocks are, on average, holding a PEG ratio of 1.32 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Baidu, Inc. (BIDU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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