This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Baidu Deserves Some Respect

Stock quotes in this article: BIDU, GOOG, AMZN, EBAY

NEW YORK ( TheStreet) -- A stock that doesn't seem to get any respect lately is the Chinese Internet giant Baidu (BID). The market has really been unkind.

The revenue and earnings projections are great but during the past six months and the market as measured buy the Value Line Index was down only 4%, Baidu was down 23%. This graph provided by Barchart shows just how far the stock has dropped recently while the market seems to be rising:

Baidu provides Internet search services. The company offers a Chinese language search platform on its Website, Baidu.com and a Japanese language search platform on its Website, Baidu.jp.

Its search services enable users to find relevant information online, including Web pages, news, images, documents, and multimedia files through the links provided on its Web sites. It sells its online marketing services directly, as well as through its distribution network. The company was formerly known as Baidu.com and changed its name to Baidu in December 2008. Baidu was founded in 2000 and is headquartered in Beijing, the People's Republic of China. (Yahoo Finance profile)

Factors to Consider:

Technical indicators by Barchart:



The stock has a 48% Barchart technical sell signal and that is in agreement with a Trend Spotter sell signal. The issue is trading below its 20-, 50- and 100-day moving averages. The price has fallen 6.2% in the last month and is 24.73% off its one-year high. This downward momentum results in a 38.59% Relative Strength Index. The stock recently traded at $116.03 which is below its 50-day moving average of $118.43.

Fundamental Factors:

Wall Street is following this issue and 22 brokerage houses have assigned 29 analysts to make projections. The analysts think revenue will grow by 54.4% this year and another 40.8% next year. Earnings are estimated to increase by 55% this year, 35.5% next year and continue by an annual rate of 39.98% over the next five years. The P/E is 33.91 which is about twice the market P/E of 15 but not out of line for a stock with these growth projections.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs