Baidu Inc. (BIDU) closed at $111.48 in the latest trading session, marking a +1.59% move from the prior day. This move outpaced the S&P 500's daily gain of 0.38%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.62%.
The stock of web search company has fallen by 2.65% in the past month, lagging the Computer and Technology sector's loss of 0.53% and the S&P 500's gain of 1.61%.
Analysts and investors alike will be keeping a close eye on the performance of Baidu Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.13, showcasing a 12.11% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $4.87 billion, showing a 6.56% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.22 per share and revenue of $20.09 billion, indicating changes of +7.59% and +11%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Baidu Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Baidu Inc. currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Baidu Inc. is currently being traded at a Forward P/E ratio of 13.35. This indicates a discount in contrast to its industry's Forward P/E of 17.16.
Meanwhile, BIDU's PEG ratio is currently 1.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Baidu, Inc. (BIDU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).