Should Value Investors Buy Baidu (BIDU) Stock?

Core Viewpoint - The article emphasizes the importance of value investing and highlights Baidu (BIDU) as a strong value stock based on its financial metrics and Zacks Rank [2][4][6]. Company Analysis - Baidu (BIDU) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for undervaluation [4]. - The stock is trading at a P/E ratio of 8.88, significantly lower than the industry average of 19.06, suggesting it may be undervalued [4]. - Over the past 52 weeks, BIDU's Forward P/E has fluctuated between 6.86 and 10.35, with a median of 8.13, further indicating its valuation range [4]. - Baidu's P/CF ratio stands at 4.63, compared to the industry's average of 16.11, reinforcing the notion of undervaluation based on cash flow [5]. - In the last 12 months, BIDU's P/CF has ranged from 4.25 to 6.89, with a median of 5.34, highlighting its cash flow performance [5]. - The combination of these metrics suggests that Baidu is likely undervalued and presents an attractive investment opportunity based on its earnings outlook [6].