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Is Baidu Inc. (BIDU) Stock Undervalued Right Now?

By Zacks Investment ResearchStock MarketsMar 24, 2020 11:50PM ET
www.investing.com/analysis/is-baidu-inc-bidu-stock-undervalued-right-now-200519018
Is Baidu Inc. (BIDU) Stock Undervalued Right Now?
By Zacks Investment Research   |  Mar 24, 2020 11:50PM ET
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Baidu Inc. (NASDAQ:BIDU). BIDU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.78, while its industry has an average P/E of 30.92. BIDU's Forward P/E has been as high as 24.72 and as low as 9.94, with a median of 16.28, all within the past year.

Investors should also note that BIDU holds a PEG ratio of 1.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BIDU's industry has an average PEG of 1.71 right now. Within the past year, BIDU's PEG has been as high as 10.91 and as low as 1.04, with a median of 2.30.

Finally, investors should note that BIDU has a P/CF ratio of 10.27. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 24.33. Over the past year, BIDU's P/CF has been as high as 21.68 and as low as 6.95, with a median of 11.12.

Value investors will likely look at more than just these metrics, but the above data helps show that Baidu Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, BIDU sticks out at as one of the market's strongest value stocks.



Baidu, Inc. (BIDU): Free Stock Analysis Report

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Zacks Investment Research

Is Baidu Inc. (BIDU) Stock Undervalued Right Now?
 

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Is Baidu Inc. (BIDU) Stock Undervalued Right Now?

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