In the latest trading session, Baidu Inc. (BIDU) closed at $113.51, marking a +2.62% move from the previous day. This change outpaced the S&P 500's 2.51% gain on the day. On the other hand, the Dow registered a gain of 2.85%, and the technology-centric Nasdaq increased by 2.8%.
The web search company's stock has dropped by 11.87% in the past month, falling short of the Computer and Technology sector's loss of 0.84% and the S&P 500's loss of 1.66%.
Investors will be eagerly watching for the performance of Baidu Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.12, indicating a 16.86% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.67 billion, indicating a 4.45% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.91 per share and a revenue of $20.02 billion, representing changes of +29.71% and +10.59%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Baidu Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Baidu Inc. possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Baidu Inc. is currently trading at a Forward P/E ratio of 11.17. This signifies a discount in comparison to the average Forward P/E of 14.03 for its industry.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 172, this industry ranks in the bottom 30% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BIDU in the coming trading sessions, be sure to utilize Zacks.com.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Baidu, Inc. (BIDU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).