Baidu Inc (BIDU) Hovers Near 52 Week High

A week from today (April, 28 2010) Baidu Inc (BIDU) will release its first quarter 2010 results. With recent reports by Yahoo! and Google coming in decently and Google expectations for profit growth increasing, other Internet search providers like Baidu should also see good results. At least that is what analysts are expecting according to recent earnings upgrades over the past month.

Analysts continued increasing the current quarter expectations three months ago, looking for $1.36  share 90 days ago and now expecting $1.52 a share. The most recent expectation increases were for the current year from $9.90 a share to $9.92 a share. This translate into 100% earnings growth for the first quarter compare to a year ago and 58.5% earnings growth for the year compared to last year. Revenue growth has also done well with near 50% revenue increases for both periods.

The stock has moved from a 3 month low of $411.71 to a recent 52 week high of $648.96. Currently trading off the high at $635.84, this is a good spot to build a small position if you want to be invested prior to the earnings. For more conservative investors, waiting for the company to forecast next quarter before purchasing shares is a good ideal. A price/earnings (P/E) ratio of 64 makes the stock price a little rich for the current earning but pay a little bit extra for strong growth is common.

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