In the latest trading session, Baidu Inc. (BIDU) closed at $142.93, marking a -0.69% move from the previous day. This change was narrower than the S&P 500's 0.7% loss on the day. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq lost 1.17%.
Heading into today, shares of the web search company had gained 0.41% over the past month, lagging the Computer and Technology sector's gain of 1.4% and the S&P 500's gain of 2.35% in that time.
Baidu Inc. will be looking to display strength as it nears its next earnings release, which is expected to be August 22, 2023. The company is expected to report EPS of $2.57, up 8.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.66 billion, up 5.27% from the year-ago period.
BIDU's full-year Zacks Consensus Estimates are calling for earnings of $10.51 per share and revenue of $19.16 billion. These results would represent year-over-year changes of +23.07% and +4.8%, respectively.
It is also important to note the recent changes to analyst estimates for Baidu Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.52% lower within the past month. Baidu Inc. is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Baidu Inc.'s current valuation metrics, including its Forward P/E ratio of 13.7. This valuation marks a discount compared to its industry's average Forward P/E of 31.
Also, we should mention that BIDU has a PEG ratio of 0.28. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.
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