In the latest trading session, Baidu Inc. (BIDU) closed at $98.41, marking a +0.93% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.53%.

The the stock of web search company has risen by 9.35% in the past month, leading the Computer and Technology sector's loss of 7.14% and the S&P 500's loss of 4.03%.

The upcoming earnings release of Baidu Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $1.79, marking a 35.14% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.34 billion, indicating a 0.64% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.08 per share and a revenue of $18.73 billion, signifying shifts of -4.27% and +1.31%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Baidu Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 6% increase. At present, Baidu Inc. boasts a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Baidu Inc. is presently being traded at a Forward P/E ratio of 9.68. This represents a discount compared to its industry's average Forward P/E of 21.63.

Meanwhile, BIDU's PEG ratio is currently 2.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.31.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 131, finds itself in the bottom 48% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BIDU in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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