Some sunshine with a thunderstorm or two possible this afternoon. A few storms may be severe. High 83F. Winds WSW at 10 to 15 mph. Chance of rain 30%..
Tonight
Some clouds this evening will give way to mainly clear skies overnight. Low 62F. Winds NW at 5 to 10 mph.
In the latest close session, Baidu Inc. (BIDU) was up +2.1% at $107.48. The stock outperformed the S&P 500, which registered a daily gain of 1.66%. At the same time, the Dow added 1.19%, and the tech-heavy Nasdaq gained 2.78%.
Shares of the web search company have depreciated by 10.74% over the course of the past month, underperforming the Computer and Technology sector's loss of 7.65%, and the S&P 500's loss of 1.49%.
The upcoming earnings release of Baidu Inc. will be of great interest to investors. The company's upcoming EPS is projected at $1.51, signifying a 20.53% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $4.65 billion, showing a 1.86% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.82 per share and a revenue of $19.73 billion, indicating changes of -10.73% and +8.98%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Baidu Inc. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 21.18% fall in the Zacks Consensus EPS estimate. At present, Baidu Inc. boasts a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Baidu Inc. is currently trading at a Forward P/E ratio of 15.44. This represents a discount compared to its industry average Forward P/E of 16.16.
It's also important to note that BIDU currently trades at a PEG ratio of 1.79. 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. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.79.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BIDU in the coming trading sessions, be sure to utilize Zacks.com.
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