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Is Baidu (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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Baidu (BIDU - Free Report) . BIDU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.07, while its industry has an average P/E of 17.37. Over the past year, BIDU's Forward P/E has been as high as 10.35 and as low as 6.86, with a median of 8.25.

Finally, our model also underscores that BIDU has a P/CF ratio of 4.84. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.38. Within the past 12 months, BIDU's P/CF has been as high as 6.91 and as low as 4.37, with a median of 5.26.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Baidu is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BIDU feels like a great value stock at the moment.

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