Is Baidu (BIDU) Stock Outpacing Its Computer and Technology Peers This Year?

Zacks
03-21

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Baidu Inc. (BIDU) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Baidu Inc. is one of 603 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Baidu Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for BIDU's full-year earnings has moved 8.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, BIDU has gained about 11.8% so far this year. In comparison, Computer and Technology companies have returned an average of -9.1%. As we can see, Baidu Inc. is performing better than its sector in the calendar year.

One other Computer and Technology stock that has outperformed the sector so far this year is Genius Sports Limited (GENI). The stock is up 16.2% year-to-date.

In Genius Sports Limited's case, the consensus EPS estimate for the current year increased 66.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Baidu Inc. is a member of the Internet - Services industry, which includes 34 individual companies and currently sits at #150 in the Zacks Industry Rank. On average, stocks in this group have lost 12.5% this year, meaning that BIDU is performing better in terms of year-to-date returns.

In contrast, Genius Sports Limited falls under the Internet - Content industry. Currently, this industry has 13 stocks and is ranked #55. Since the beginning of the year, the industry has moved +7.7%.

Investors with an interest in Computer and Technology stocks should continue to track Baidu Inc. and Genius Sports Limited. These stocks will be looking to continue their solid performance.

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

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