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Baidu Inc. (BIDU) Stock Falls Amid Market Uptick: What Investors Need to Know

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Baidu Inc. (BIDU - Free Report) closed the latest trading day at $84.46, indicating a -0.4% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.02%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.26%.

Shares of the web search company witnessed a loss of 9.76% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.61% and the S&P 500's gain of 2.99%.

The investment community will be paying close attention to the earnings performance of Baidu Inc. in its upcoming release. The company is slated to reveal its earnings on November 21, 2024. The company is predicted to post an EPS of $2.35, indicating a 16.07% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.69 billion, indicating a 0.63% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $10.37 per share and a revenue of $18.76 billion, demonstrating changes of -8.96% and -0.59%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Baidu Inc. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team 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.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 7.1% downward. Baidu Inc. is holding a Zacks Rank of #5 (Strong Sell) right now.

In terms of valuation, Baidu Inc. is presently being traded at a Forward P/E ratio of 8.18. This expresses a discount compared to the average Forward P/E of 31.02 of its industry.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 25% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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