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Why Baidu Inc. (BIDU) Outpaced the Stock Market Today

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In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $88.98, marking a +1.36% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.11%. Meanwhile, the Dow gained 1.64%, and the Nasdaq, a tech-heavy index, added 1.03%.

Shares of the web search company witnessed a gain of 0.86% over the previous month, beating the performance of the Computer and Technology sector with its loss of 5.32% and the S&P 500's loss of 1.16%.

The investment community will be paying close attention to the earnings performance of Baidu Inc. in its upcoming release. The company is slated to reveal its earnings on August 22, 2024. On that day, Baidu Inc. is projected to report earnings of $2.68 per share, which would represent a year-over-year decline of 13.83%. Our most recent consensus estimate is calling for quarterly revenue of $4.74 billion, up 0.84% from the year-ago period.

BIDU's full-year Zacks Consensus Estimates are calling for earnings of $11.18 per share and revenue of $19.23 billion. These results would represent year-over-year changes of -1.84% and +1.87%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Baidu Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.64% lower. At present, Baidu Inc. boasts a Zacks Rank of #4 (Sell).

Digging into valuation, Baidu Inc. currently has a Forward P/E ratio of 7.85. This signifies a discount in comparison to the average Forward P/E of 21.93 for its industry.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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