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Baidu Inc. (BIDU) Stock Dips While Market Gains: Key Facts

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In the latest trading session, Baidu Inc. (BIDU - Free Report) closed at $103.80, marking a -0.26% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.61%. Meanwhile, the Dow experienced a rise of 0.97%, and the technology-dominated Nasdaq saw an increase of 0.33%.

Coming into today, shares of the web search company had gained 23.79% in the past month. In that same time, the Computer and Technology sector gained 8.6%, while the S&P 500 gained 5.36%.

Market participants will be closely following the financial results of Baidu Inc. in its upcoming release. The company is predicted to post an EPS of $2.73, indicating a 2.5% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.84 billion, up 2.53% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $11.17 per share and revenue of $19.23 billion, which would represent changes of -1.93% and +1.86%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Baidu Inc. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Baidu Inc. possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Baidu Inc. is presently being traded at a Forward P/E ratio of 9.32. This indicates a discount in contrast to its industry's Forward P/E of 36.6.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 36% of all industries, numbering over 250.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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