During the last trading session, Baidu Inc. (BIDU – Free Report) closed at $ 180.96, marking a +1.09% move from the previous day. The stock topped the S&P 500 daily gain by 0.37%.
Prior to today’s trading, shares of the web search company had gained 14.22% over the past month. This topped the computer and tech sector’s 0.04% gain and the S&P 500’s 2.13% gain during this period.
Wall Street will research BIDU’s positivity as the date of its next earnings report approaches. The company is expected to post EPS of $ 2.16, down 28% from the previous year quarter. Our most recent consensus estimate projects quarterly revenue of $ 4.97 billion, up 19.63% from the previous year.
Zacks’ consensus estimates for BIDU’s full year forecast earnings of $ 8.81 per share and revenue of $ 19.51 billion. These results would represent year-over-year variations of -10.1% and + 24.56%, respectively.
It is also important to note the recent changes in analyst estimates for BIDU. These revisions help show the ever-changing nature of short-term business trends. Thus, the positive estimate revisions reflect the optimism of analysts about the business and profitability of the company.
Our research shows that these changes in estimate are directly correlated with short-term stock prices. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.
The Zacks ranking system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive history of externally audited outperformance, with # 1 stocks generating an average annual return of +25. % since 1988. Over the past 30 days, our consensus EPS forecast has remained stagnant. BIDU currently holds a Zacks rank of 3 (Maintain).
Digging into the valuation, BIDU currently has a forward P / E ratio of 20.32. For comparison, its industry has an average forward P / E of 28.24, which means BIDU is trading at a discount to the group.
It should also be noted that BIDU currently has a PEG ratio of 11.16. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. Internet Services held an average PEG ratio of 4.4 at yesterday’s closing price.
The Internet – Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 101, which places it in the top 40% of 250+ industries.
The Zacks Industry Rankings include is ranked from best to worst in terms of the average Zacks rankings of individual companies in each of these industries. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Make sure to use Zacks. Com to track all of these stock market metrics, and more, over future trading sessions.