Trade-Ideas LLC identified Baidu ( BIDU) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) 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 $397.3 million.
- BIDU has traded 2.3 million shares today.
- BIDU traded in a range 213.7% of the normal price range with a price range of $9.44.
- BIDU traded above its daily resistance level (quality: 128 days, meaning that the stock is crossing a resistance level set by the last 128 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher. EXCLUSIVE OFFER: Get the inside scoop on opportunities in BIDU with the Ticky from Trade-Ideas. See the FREE profile for BIDU NOW at Trade-Ideas 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 13. Currently there are 5 analysts that rate Baidu a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Baidu has been 2.9 million shares per day over the past 30 days. Baidu has a market cap of $65.0 billion and is part of the technology sector and internet industry. Shares are down 1.6% year-to-date as of the close of trading on Thursday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. 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, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- BIDU's revenue growth has slightly outpaced the industry average of 20.4%. Since the same quarter one year prior, revenues rose by 24.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BAIDU INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. 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 ($41.90 versus $14.69).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 653.1% when compared to the same quarter one year prior, rising from $503.02 million to $3,788.27 million.
- 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.
- The gross profit margin for BAIDU INC is rather high; currently it is at 60.02%. 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, BIDU's net profit margin of 138.00% significantly outperformed against the industry.
- You can view the full Baidu Ratings Report.
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