Baidu Inc. (BIDU) closed the latest trading day at $79.53, indicating a +1.75% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq lost 0.23%.
Heading into today, shares of the web search company had lost 11.52% over the past month, lagging the Computer and Technology sector's loss of 3.73% and the S&P 500's loss of 3.45% in that time.
The investment community will be closely monitoring the performance of Baidu Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.03, marking a 34.09% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.59 billion, reflecting a 6.69% fall from the equivalent quarter last year.
Investors might also notice recent changes to analyst estimates for Baidu Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Baidu Inc. holds a Zacks Rank of #5 (Strong Sell).
Investors should also note Baidu Inc.'s current valuation metrics, including its Forward P/E ratio of 8.34. This indicates a discount in contrast to its industry's Forward P/E of 21.51.
Also, we should mention that BIDU has a PEG ratio of 1.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.5 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Free: 5 Stocks to Buy As Infrastructure Spending Soars
Trillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.
In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.
Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Baidu, Inc. (BIDU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
