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Should Value Investors Buy Baidu (BIDU) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Baidu (BIDU - Free Report) . BIDU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.88 right now. For comparison, its industry sports an average P/E of 19.06. Over the past 52 weeks, BIDU's Forward P/E has been as high as 10.35 and as low as 6.86, with a median of 8.13.

Finally, investors will want to recognize that BIDU has a P/CF ratio of 4.63. 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. BIDU's P/CF compares to its industry's average P/CF of 16.11. Within the past 12 months, BIDU's P/CF has been as high as 6.89 and as low as 4.25, with a median of 5.34.

These are only a few of the key metrics included in Baidu's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BIDU looks like an impressive value stock at the moment.


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