For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Baidu (BIDU) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Baidu is one of 615 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. BIDU is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for BIDU's full-year earnings has moved 43.52% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that BIDU has returned about 7.97% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 32.06%. This shows that Baidu is outperforming its peers so far this year.
Looking more specifically, BIDU belongs to the Internet - Services industry, which includes 50 individual stocks and currently sits at #196 in the Zacks Industry Rank. Stocks in this group have gained about 31.84% so far this year, so BIDU is slightly underperforming its industry this group in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to BIDU as it looks to continue its solid performance.
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