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Baidu Inc. (BIDU) Stock Drops Despite Market Gains: Important Facts to Note

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Baidu Inc. (BIDU - Free Report) ended the recent trading session at $90.99, demonstrating a -2.25% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.07%. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq gained 0.18%.

Shares of the web search company have appreciated by 7.42% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.22%, and outperforming the S&P 500's gain of 5.71%.

Analysts and investors alike will be keeping a close eye on the performance of Baidu Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on August 20, 2025. The company is predicted to post an EPS of $1.74, indicating a 39.79% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $4.6 billion, indicating a 1.54% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.66 per share and revenue of $18.63 billion, which would represent changes of -17.76% and +0.76%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Baidu Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 12.27% lower. Baidu Inc. currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Baidu Inc. currently has a Forward P/E ratio of 10.75. This indicates a discount in contrast to its industry's Forward P/E of 20.4.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 196, positioning it in the bottom 21% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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