Baidu Inc. (BIDU) ended the recent trading session at $88.66, demonstrating a -1.79% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.95%.
Heading into today, shares of the web search company had gained 3.19% over the past month, lagging the Computer and Technology sector's gain of 5.6% and the S&P 500's gain of 3.85%.
Market participants will be closely following the financial results of Baidu Inc. in its upcoming release. The company's upcoming EPS is projected at $2.05, signifying a 29.07% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.61 billion, indicating a 1.37% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.28 per share and a revenue of $18.73 billion, signifying shifts of -11.87% and +1.28%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Baidu Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Baidu Inc. is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, Baidu Inc. is at present trading with a Forward P/E ratio of 9.73. This indicates a discount in contrast to its industry's Forward P/E of 19.96.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 38% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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Baidu, Inc. (BIDU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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