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Baidu Inc. (BIDU) Gains As Market Dips: What You Should Know
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Baidu Inc. (BIDU - Free Report) closed the most recent trading day at $121.28, moving +0.56% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 2.14%.
Heading into today, shares of the web search company had lost 20.08% over the past month, lagging the Computer and Technology sector's gain of 4.01% and the S&P 500's gain of 5.1% in that time.
Baidu Inc. will be looking to display strength as it nears its next earnings release. On that day, Baidu Inc. is projected to report earnings of $1.93 per share, which would represent year-over-year growth of 9.04%. Meanwhile, our latest consensus estimate is calling for revenue of $4.39 billion, down 2.05% from the prior-year quarter.
BIDU's full-year Zacks Consensus Estimates are calling for earnings of $10.20 per share and revenue of $19.97 billion. These results would represent year-over-year changes of +19.44% and +9.25%, respectively.
Investors should also note any recent changes to analyst estimates for Baidu Inc.Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 17.51% lower within the past month. Baidu Inc. is currently a Zacks Rank #4 (Sell).
In terms of valuation, Baidu Inc. is currently trading at a Forward P/E ratio of 11.82. This valuation marks a discount compared to its industry's average Forward P/E of 23.38.
Also, we should mention that BIDU has a PEG ratio of 0.62. 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 1.38 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 158, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Baidu Inc. (BIDU) Gains As Market Dips: What You Should Know
Baidu Inc. (BIDU - Free Report) closed the most recent trading day at $121.28, moving +0.56% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 2.14%.
Heading into today, shares of the web search company had lost 20.08% over the past month, lagging the Computer and Technology sector's gain of 4.01% and the S&P 500's gain of 5.1% in that time.
Baidu Inc. will be looking to display strength as it nears its next earnings release. On that day, Baidu Inc. is projected to report earnings of $1.93 per share, which would represent year-over-year growth of 9.04%. Meanwhile, our latest consensus estimate is calling for revenue of $4.39 billion, down 2.05% from the prior-year quarter.
BIDU's full-year Zacks Consensus Estimates are calling for earnings of $10.20 per share and revenue of $19.97 billion. These results would represent year-over-year changes of +19.44% and +9.25%, respectively.
Investors should also note any recent changes to analyst estimates for Baidu Inc.Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 17.51% lower within the past month. Baidu Inc. is currently a Zacks Rank #4 (Sell).
In terms of valuation, Baidu Inc. is currently trading at a Forward P/E ratio of 11.82. This valuation marks a discount compared to its industry's average Forward P/E of 23.38.
Also, we should mention that BIDU has a PEG ratio of 0.62. 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 1.38 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 158, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.