Trade-Ideas LLC identified

Baidu

(

BIDU

) as a post-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 $448.0 million.
  • BIDU is up 3.7% today from today's close.

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More details on BIDU:

Baidu, Inc. provides Internet search services in China and internationally. It operates through Search Services, Transaction Services, and IQiyi segments. BIDU has a PE ratio of 11. Currently there are 6 analysts that rate Baidu a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Baidu has been 3.9 million shares per day over the past 30 days. Baidu has a market cap of $56.8 billion and is part of the technology sector and internet industry. Shares are down 12.4% 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

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 20.5%. Since the same quarter one year prior, revenues rose by 19.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, BAIDU INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Despite currently having a low debt-to-equity ratio of 0.42, 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 2.84 is very high and demonstrates very strong liquidity.
  • BAIDU INC's earnings per share declined by 23.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BAIDU INC increased its bottom line by earning $14.69 versus $6.01 in the prior year. This year, the market expects an improvement in earnings ($32.17 versus $14.69).

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