| Stock (Symbol) | Stock Price | |
Baidu.com (BIDU) |
$133 |
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| Data is as of | Expected to Report | Sector |
February 22, 2012 |
May 16 |
Technology |
| Sharek’s Take | ||
 Analysts fear Baidu (BIDU) might be in for slowing profit growth. I don’t see it. A year ago we thought profits would rise 61% and the company came through with 93% growth. Now the street expects 51% growth, and I’m guessing 60% to 80% is coming. Revenue is expected to climb 67% this year.The issue with BIDU right now is other Chinese Internet companies are having ad slowdowns. But honestly, these companies weren’t in BIDU’s league to begin with — if they were I would have owned the stocks. In the end I feel BIDU’s growth will still be over 50%, if that’s slowing growth then I’ll take it. |
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| One-Year Chart | ||
 BIDU has been here for a year. A year-long base with profit growth of at least 86% in the previous four quarters. In the previous five quarterly research reports, BIDU’s P/E has gone from 52 to 49, 49, 27 and now 29. This stock should be 50% higher. Estimates show profit growth of 89% NxtQtr and BIDU usually beats. Long Term Growth Rate dropped from 50% to 44% this quarter. |
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| Earnings Table | ||
 Profits jumped 86% last quarter. Revenue growth still keeps clicking along. Sales were up 91% last quarter, down from 94% 2QtrsAgo. The entire top half of the earnings table is flooded in green. BIDU beat by 5 cents last quarter. It was a regular beat for them. Annual Profit Estimates nudged higher. This is one thing that has not looked great the last two quarters. I want bigger increases. Quarterly estimates are fantastic. Wow, growth is expected to average 62% the next four quarters. Estimates for the next three quarters jumped. |
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| Fair Value | ||
 I think with 51% profit growth expected BIDU deserves a P/E of 55. This stock’s undervalued — big time. |
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| Ten-Year Chart | ||
 I like the fact BIDU hasn’t gone up in a while. I feel its digested prior gains and could now make a move higher.Note 2012 profit growth is expected to clock in at 51%. If that’s slowing growth, I’ll take it. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
2 of 20 |
Baidu’s growth is slowing? Doesn’t look like it to me. What intrigues me about the stock is the year-long base BIDU has built. This stock is ready to break out and make a move. |
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Aggressive Growth Portfolio
2 of 9 |
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