Baidu Inc. (BIDU): Today's Featured Internet Laggard

Jul 30, 2012 5:01 PM EDT

Baidu ( BIDU) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day down 1.1%. By the end of trading, Baidu fell $2.41 (-1.9%) to $121.29 on average volume. Throughout the day, 3.8 million shares of Baidu exchanged hands as compared to its average daily volume of 4.3 million shares. The stock ranged in price between $119.37-$123.70 after having opened the day at $123.31 as compared to the previous trading day's close of $123.70. Other company's within the Internet industry that declined today were: Groupon ( GRPN), down 9.1%, MeetMe ( MEET), down 9.1%, SouFun Holdings ( SFUN), down 7.2%, and CafePress ( PRSS), down 6.7%.

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Baidu, Inc. 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. Baidu has a market cap of $41.43 billion and is part of the technology sector. The company has a P/E ratio of 22.2, below the average internet industry P/E ratio of 49 and above the S&P 500 P/E ratio of 17.7. Shares are up 6.2% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Baidu a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Baidu as a buy. 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full Baidu Ratings Report.

On the positive front, ChinaCache International Holdings ( CCIH), up 7.4%, VirnetX ( VHC), up 7.2%, Yelp ( YELP), up 5.7%, and BroadVision ( BVSN), up 4.2%, were all gainers within the internet industry with Shutterfly ( SFLY) being today's featured internet industry leader.

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For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).