Baidu Inc. (BIDU): Today's Featured Technology Winner

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 Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 0.9%. By the end of trading, Baidu rose $1.22 (1.3%) to $97.77 on average volume. Throughout the day, 3,160,470 shares of Baidu exchanged hands as compared to its average daily volume of 4,207,500 shares. The stock ranged in a price between $95.73-$98.24 after having opened the day at $96.18 as compared to the previous trading day's close of $96.55. Other companies within the Technology sector that increased today were: Clearwire ( CLWR), up 29.3%, Digital Power Corporation ( DPW), up 16.8%, Renewable Energy Trade Board ( EBOD), up 15.9% and Identive Group ( INVE), up 13.9%.
  • 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 $34.0 billion and is part of the internet industry. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are down 3.0% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Baidu a buy, 1 analyst rates it a sell, and 8 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, growth in earnings per share, expanding profit margins, increase in net income 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.

On the negative front, Kingtone Wirelessinfo Solution ( KONE), down 16.7%, Vimicro International Corporation ( VIMC), down 15.6%, Plug Power ( PLUG), down 14.1% and Alvarion ( ALVR), down 12.9% , were all laggards within the technology sector with CenturyLink ( CTL) being today's technology sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.