Baidu Inc. (BIDU Stock) Gains But Lags Market: What You Should Know

bidu stock

bidu stock

Baidu Inc. (NASDAQ:BIDU) closed at $121.40 in the latest trading session, marking a +1.79% move from the prior day. The Bidu stock lagged the S&P 500’s daily gain of 1.97%. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.25%.

Prior to today’s trading, shares of the web search company had lost 13.38% over the past month. This has lagged the Computer and Technology sector’s loss of 11.71% and the S&P 500’s loss of 9.93% in that time.

Bidu Stock Price Analysis

Baidu Inc. (Bidu stock) will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.51, up 10.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.01 billion, up 1.09% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.16 per share and revenue of $18.88 billion. These totals would mark changes of +9.05% and -2.15%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Baidu Inc (Bidu stock). Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 23.6% higher. Baidu Inc. is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, Bidu stock currently has a Forward P/E ratio of 13.03. For comparison, its industry has an average Forward P/E of 19.97, which means Baidu Inc. is trading at a discount to the group.

Investors should also note that BIDU has a PEG ratio of 0.62 right now. 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. BIDU’s industry had an average PEG ratio of 1.59 as of yesterday’s close.

The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.


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About the author: Marianna is a writer and editor who specializes in PR, SEO and content marketing. She spent 3+ years as a human resources specialist where she developed an interest in investor relations.