Strong Performance Today In Internet From Baidu Inc. (BIDU)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Baidu ( BIDU) pushed the Internet industry higher today making it today's featured internet winner. The industry as a whole closed the day up 2.5%. By the end of trading, Baidu rose $5.20 (6.1%) to $90.07 on heavy volume. Throughout the day, 7.7 million shares of Baidu exchanged hands as compared to its average daily volume of 4.1 million shares. The stock ranged in a price between $86.73-$91.10 after having opened the day at $88 as compared to the previous trading day's close of $84.87. Other companies within the Internet industry that increased today were: Synacor ( SYNC), up 14.6%, Remark Media ( MARK), up 13.3%, MeetMe ( MEET), up 11.5%, and Net Element International ( NETE), up 11.2%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Baidu, Inc. provides Internet search services. Baidu has a market cap of $29.4 billion and is part of the technology sector. The company has a P/E ratio of 17.6, below the S&P 500 P/E ratio of 17.7. Shares are down 15.4% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Baidu a buy, one analyst rates it a sell, and seven 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100% See his top picks for 14-days FREE.

null

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers