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Is Baidu Inc. (BIDU) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Baidu Inc. (BIDU - Free Report) . BIDU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.38. This compares to its industry's average Forward P/E of 30.25. Over the last 12 months, BIDU's Forward P/E has been as high as 24.72 and as low as 9.94, with a median of 15.86.

Investors should also note that BIDU holds a PEG ratio of 1.14. 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 PEG compares to its industry's average PEG of 1.67. BIDU's PEG has been as high as 10.91 and as low as 1.05, with a median of 2.24, all within the past year.

Finally, investors should note that BIDU has a P/CF ratio of 11.34. 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 24.33. BIDU's P/CF has been as high as 23.65 and as low as 7.16, with a median of 11.34, all within the past year.

These are just a handful of the figures considered in Baidu Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BIDU is an impressive value stock right now.


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