In the latest trading session, Baidu Inc. (BIDU) closed at $236.94, marking a -1.05% move from the previous day. This change lagged the S&P 500's daily gain of 0.23%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.43%.
Coming into today, shares of the web search company had gained 29.08% in the past month. In that same time, the Computer and Technology sector gained 4.19%, while the S&P 500 gained 3.86%.
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 $2.48 per share. This would mark a year-over-year decline of 34.91%. Meanwhile, our latest consensus estimate is calling for revenue of $4.44 billion, up 6.99% from the prior-year quarter.
Any recent changes to analyst estimates for BIDU should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BIDU is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, BIDU currently has a Forward P/E ratio of 23.94. Its industry sports an average Forward P/E of 31.15, so we one might conclude that BIDU is trading at a discount comparatively.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 128, putting it in the top 50% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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