In the latest trading session, Baidu Inc. (BIDU) closed at $85.33, marking a +1.68% move from the previous day. This change outpaced the S&P 500’s 0.6% gain on the day. At the same time, the Dow added 0.83%, and the tech-heavy Nasdaq gained 0.64%.
Prior to today’s trading, shares of the web search company had lost 7.36% lagged the Computer and Technology sector’s gain of 4.03% and the S&P 500’s gain of 1.34%.
Analysts and investors alike will be keeping a close eye on the performance of Baidu Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.42, indicating a 8.97% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.56 billion, up 4.02% from the year-ago period.
BIDU’s full-year Zacks Consensus Estimates are calling for earnings of $5.66 per share and revenue of $18.88 billion. These results would represent year-over-year changes of -25.92% and +4.31%, respectively.
Any recent changes to analyst estimates for Baidu Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has remained steady. Baidu Inc. is currently sporting a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Baidu Inc. is currently exchanging hands at a Forward P/E ratio of 14.83. This represents a discount compared to its industry average Forward P/E of 14.93.
Also, we should mention that BIDU has a PEG ratio of 2.83. 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 1.79 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 190, which puts it in the bottom 23% of all 250+ industries.
Source: finance.yahoo.com
