In the latest trading session, Baidu Inc. (BIDU) closed at $107.20, marking a +1.65% move from the previous day. The stock outpaced the S&P 500's daily gain of 1%.
Prior to today's trading, shares of the web search company had lost 4.97% over the past month. This has lagged the Computer and Technology sector's loss of 0.45% and the S&P 500's loss of 1.22% in that time.
Wall Street will be looking for positivity from BIDU as it approaches its next earnings report date. In that report, analysts expect BIDU to post earnings of $1.76 per share. This would mark a year-over-year decline of 36.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.02 billion, down 2.08% from the year-ago period.
BIDU's full-year Zacks Consensus Estimates are calling for earnings of $5.20 per share and revenue of $15.67 billion. These results would represent year-over-year changes of -46.06% and +2.25%, respectively.
Investors should also note any recent changes to analyst estimates for BIDU. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BIDU currently has a Zacks Rank of #3 (Hold).
Investors should also note BIDU's current valuation metrics, including its Forward P/E ratio of 20.28. Its industry sports an average Forward P/E of 27.33, so we one might conclude that BIDU is trading at a discount comparatively.
It is also worth noting that BIDU currently has a PEG ratio of 7.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.27 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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