High-Growth Stocks to Buy #5: Baidu (BIDU)
Keeping with the Internet theme, Baidu (BIDU) should be no stranger to momentum investors out there. The stock has long been crowed about as being the “next Google (GOOG)” because of its dominance in Chinese search and advertising, among other things.
And thanks to the rather heavy-handed nature of Beijing’s media regulations, it’s safe to say that nobody is going to be challenging BIDU anytime soon.
The big thing to note, however, is that Baidu is not simply a big company supported by Chinese autocrats. The company is growing briskly, as is Internet use across China.
For instance, according to Baidu financials, the company’s fiscal 2010 revenue was roughly $1.3 billion but fiscal 2013 revenue was nearly $5.1 billion — for a top-line growth rate of nearly 300% in three years! Equally impressive is that net income tripled, from $534 million in fiscal 2010 to more than $1.73 billion in 2013.
No wonder Baidu stock is up about 300% since January 2010, and up more than 70% in the past year.
Shares have rolled back slightly from recent 52-week highs, but I’d be a buyer of BIDU in the $150s.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.