NEW YORK (TheStreet) -- Baidu (BIDU) - Get Baidu Inc. Report stock closed up 6.03% to $217.97 on heavy volume in Monday's trading session, as shares of the company surged in the final minutes of trading before being added to the MSCI tomorrow.
Baidu is among 14 China-based U.S. traded stocks that will be added to index provider MSCI's emerging markets index on Tuesday.
Foreign-listed stocks had been forbidden from the index until now, according to Reuters.
About 25.04 million shares of Baidu have been traded so far today, well above the average trading volume of roughly 4.60 million shares.
Shares of the Beijing-based Chinese-language Internet search provider are down 1.77% to $214.11 in after-hours trading.
Separately, TheStreet Ratings team rates BAIDU INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate BAIDU INC (BIDU) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- BIDU's revenue growth has slightly outpaced the industry average of 15.2%. Since the same quarter one year prior, revenues rose by 24.0%. 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.
- BIDU's debt-to-equity ratio of 0.67 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.83 is very high and demonstrates very strong liquidity.
- BAIDU INC's earnings per share declined by 35.2% 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 $6.01 versus $4.96 in the prior year. This year, the market expects an improvement in earnings ($31.75 versus $6.01).
- The gross profit margin for BAIDU INC is rather high; currently it is at 62.85%. Regardless of BIDU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.22% trails the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, BAIDU INC's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: BIDU
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.