Has Baidu (BIDU) Outpaced Other Computer and Technology Stocks This Year?

Zacks
05-05

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is Baidu Inc. (BIDU) one of those stocks right now? 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 a member of the Computer and Technology sector. This group includes 608 individual stocks and currently holds a Zacks Sector Rank of #8. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Baidu Inc. is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BIDU's full-year earnings has moved 10.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, BIDU has returned 6.7% so far this year. Meanwhile, the Computer and Technology sector has returned an average of -7.3% on a year-to-date basis. This means that Baidu Inc. is outperforming the sector as a whole this year.

AAC Technologies Holdings Inc. (AACAY) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 2.5%.

Over the past three months, AAC Technologies Holdings Inc.'s consensus EPS estimate for the current year has increased 10%. 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 36 individual companies and currently sits at #156 in the Zacks Industry Rank. On average, this group has lost an average of 11.2% so far this year, meaning that BIDU is performing better in terms of year-to-date returns.

In contrast, AAC Technologies Holdings Inc. falls under the Electronics - Miscellaneous Components industry. Currently, this industry has 26 stocks and is ranked #139. Since the beginning of the year, the industry has moved -5.8%.

Investors interested in the Computer and Technology sector may want to keep a close eye on Baidu Inc. and AAC Technologies Holdings Inc. as they attempt to continue their solid performance.

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

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