Baidu Inc. (BIDU) Laps the Stock Market: Here's Why

Company Performance - Baidu Inc. ended the recent trading session at $90.83, showing a +1.49% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.74% [1] - The stock has decreased by 9.06% over the past month, which is worse than the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77% [1] Upcoming Earnings - Baidu's earnings report is scheduled for May 21, 2025, with projected EPS of$ 1.96, indicating a 28.99% decline compared to the same quarter last year [2] - Revenue is expected to be $4.3 billion, down 1.56% from the prior-year quarter [2] Annual Estimates - For the entire year, the Zacks Consensus Estimates forecast earnings of$ 10.08 per share and revenue of $18.8 billion, reflecting changes of -4.27% and +1.65% respectively compared to the previous year [3] - Recent changes to analyst estimates suggest a favorable outlook on the company's business health and profitability [3] Analyst Ratings - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Baidu Inc. at 3 (Hold) [5] - Over the past month, the Zacks Consensus EPS estimate has increased by 0.06% [5] Valuation Metrics - Baidu Inc. has a Forward P/E ratio of 8.88, which is a discount compared to the industry's average Forward P/E of 18.61 [6] - The company has a PEG ratio of 2.12, while the Internet-Services industry had an average PEG ratio of 1.3 [6] Industry Context - The Internet-Services industry is part of the Computer and Technology sector, which has a Zacks Industry Rank of 178, placing it in the bottom 29% of all industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]