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.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts