Strong Upward Pre-Market Activity For Baidu (BIDU) - TheStreet

Trade-Ideas LLC identified

Baidu

(

BIDU

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Baidu as such a stock due to the following factors:

  • BIDU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $834.6 million.
  • BIDU traded 27,248 shares today in the pre-market hours as of 8:00 AM.
  • BIDU is up 8.3% today from yesterday's close.

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More details on BIDU:

Baidu, Inc. provides Internet search services in China and internationally. BIDU has a PE ratio of 5. Currently there are 7 analysts that rate Baidu a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Baidu has been 4.5 million shares per day over the past 30 days. Baidu has a market cap of $61.1 billion and is part of the technology sector and internet industry. Shares are down 24.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Baidu as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 10.2%. Since the same quarter one year prior, revenues rose by 38.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • BAIDU INC reported flat earnings per share in the most recent quarter. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, BAIDU INC increased its bottom line by earning $6.01 versus $4.96 in the prior year. This year, the market expects an improvement in earnings ($32.36 versus $6.01).
  • Despite currently having a low debt-to-equity ratio of 0.60, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.33 is very high and demonstrates very strong liquidity.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet Software & Services industry average, but is greater than that of the S&P 500. The net income increased by 3.1% when compared to the same quarter one year prior, going from $572.56 million to $590.58 million.
  • BIDU's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.00%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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