Baidu, Inc. (NASDAQ:BIDU) Stock: The Math Behind The Indicators

Taking into account all relevant factors, Baidu, Inc. (NASDAQ:BIDU) scores 88% Buy on the technical side. The share price is also flashing a Buy from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for BIDU averaged 100% Buy with an average daily trading volume over the past 20 days at 4008959 shares. Those using medium-term investment strategies, the shares have overall a 1% Buy signal while the 50-day average daily volume remained almost 3938160 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was 3615088 shares, is signaling50% Buy for long term investors.

The stock is lingering around the initial support level of $138.14. After this, the following support is at the zone of $136.87. Up until the time the BIDU stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 66.35 on the daily chart, and this may be a cause for concern. In case the price goes below $136.87 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $140.92 level may cause a pull-back move approaching $142.43 mark.

In the recent trading session, Baidu, Inc. (NASDAQ:BIDU) shares gained 0.82% or 1.14 points to reach at $140.54 with a thin trading volume of 1.188 million shares. It opened the trading session at $139.57, the shares rose to $141.17 and dropped to $138.39, the range by which the price of stock traded the whole session. The company now has a market cap of $47.4 billion and currently has 339.74 million outstanding shares. Baidu, Inc. (BIDU) stock has accumulated 17.01 percent of market value in 21 trading days.

Stock analysts at Macquarie, assumed coverage of shares of Baidu, Inc. (NASDAQ:BIDU) with Neutral recommendation, according to their opinion released on November 22. Oppenheimer analysts bumped their recommendation on BIDU stock from prior rating of Perform to Outperform in a separate flash note to investors on November 11. Analysts at Morgan Stanley issued an upgrade for the stock to Overweight from previous rating of Equal-Weight, in a research note that dated back to November 07.

BIDU stock’s trailing 3-year beta is 1.81, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$0.98 share in the trailing 52 weeks. The stock’s value surged 10.28 percent year to date (YTD) compared to a decline of -16.99 percent in 52 week’s period. The firm’s shares are still trading -24.53 percent below its 1-year high of $186.22 and 50.49 percent up from 52-week low of $93.39. The average consensus ranking on the company is 2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Baidu, Inc. (BIDU) shares are trading at a P/E ratio of -167.64 times earnings posted in the trailing 12 months. The industry BIDU deals with has an average P/E of 31.6. Its P/B ratio is standing at 2.08X compared to the 6.77 industry average. It is additionally sporting a 1.84 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.34. Baidu, Inc. has a 40.5% gross profit margin, with its operating margin around 2.1%. Alongside this, the company’s net profit margin currently stands at -2.2%.

Past records have indicated that shares in Baidu, Inc. rose on 25 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of BIDU’s Q4 earnings on February 17. Analysts are predicting revenue to suffer decline of -3.1 percent to $3.92B in the financial fourth quarter, while EPS will soar by about -5.1 percent to $1.86 per share. In the last quarter, it’s earnings of $1.43392 per share came better than the $0.45227, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $4.05B, topping the $3.87B analysts had expected. Earnings are seen to rise by 48.9 percent this year, 29.24 percent in the coming year and the trend continues by -1.26 percent every year in the next 5 years.