Baidu Inc. (BIDU) Surpasses Market Returns: Some Facts Worth Knowing

Baidu Inc. (BIDU) closed the most recent trading day at $140.23, moving +2.03% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.39%. The web search company's stock has climbed by 42.57% in the past month, exceeding the Computer and Technology sector's gain of 8.78% and the S&P 500's gain of 3.94%.The upcoming earnings release of Baidu Inc. will be of great interest to investors. The company is predicted to post an EPS of $1.33, indicating a 43.88% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.33 billion, reflecting a 9.52% fall from the equivalent quarter last year. BIDU's full-year Zacks Consensus Estimates are calling for earnings of $7.51 per share and revenue of $18.28 billion. These results would represent year-over-year changes of -28.68% and -1.12%, respectively. Investors should also note any recent changes to analyst estimates for Baidu Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Based on our research, we believe these estimate revisions are directly related to near-term 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. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Baidu Inc. possesses a Zacks Rank of #3 (Hold). From a valuation perspective, Baidu Inc. is currently exchanging hands at a Forward P/E ratio of 18.31. This indicates a discount in contrast to its industry's Forward P/E of 24.61. The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baidu, Inc. (BIDU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks