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

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.

Baidu (BIDU - Free Report) is a stock many investors are watching right now. BIDU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.91, while its industry has an average P/E of 21.71. Over the past 52 weeks, BIDU's Forward P/E has been as high as 25.49 and as low as 11.35, with a median of 16.30.

Investors will also notice that BIDU has a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BIDU's industry has an average PEG of 1.43 right now. BIDU's PEG has been as high as 14.01 and as low as 0.61, with a median of 8.84, all within the past year.

Investors could also keep in mind Sify Technologies Limited (SIFY - Free Report) , an Internet - Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Sify Technologies Limited is currently trading with a Forward P/E ratio of 19.90 while its PEG ratio sits at 1. Both of the company's metrics compare favorably to its industry's average P/E of 21.71 and average PEG ratio of 1.43.

SIFY's price-to-earnings ratio has been as high as 31.04 and as low as 19.26, with a median of 22.58, while its PEG ratio has been as high as 1.55 and as low as 0.96, with a median of 1.13, all within the past year.

Sify Technologies Limited sports a P/B ratio of 1.89 as well; this compares to its industry's price-to-book ratio of 4.61. In the past 52 weeks, SIFY's P/B has been as high as 3.82, as low as 1.79, with a median of 2.90.

These are only a few of the key metrics included in Baidu and Sify Technologies Limited strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BIDU and SIFY look like an impressive value stock at the moment.


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