Baidu stock: buy or sell
Updated on:
Jan 18th, 2021
2
Baidu stock brief
- Baidu closed last Friday at $238.87 after collapsing a -4.07%.
- The stock is configuring an uptrend pattern since July 2020, when it bottomed at $114.75. This rally marked a 108.17% gain
- KeyCorp posted a bullish rating for Baidu last Thursday, targeting $290.00
- Baidu, Inc. provides Internet search services in China and internationally. It operates through two segments, Baidu Core and iQIYI.
Should I buy Baidu stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $BIDU stock a buy?
Currently, Baidu stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $BIDU will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Baidu stock?
"To sell or not to sell", if you are holding Baidu shares?. Similarly to when we have to buy shares, deciding when is appropiate time to sell is not a whimsical decision, and we must adhere our own trading style. We like very simple strategies to guide us on when is the best time to sell our shares. Be aware that these strategies are not intended for selling short Baidu stock
A guiding principle is that you should not mantain a trading operation that generates losses greater than those expected by the time of purchase. The moment to sell your stock always has to be determined by the stop-loss (automatic or manual)
Is it time to sell Baidu stock?
In the current situation of Baidu there is not any eligible sell setup, so Baidu stock holders with operations in profit can keep their positions
Baidu ratings
In the last month, 4 analyst ratings were published for Baidu
| Brokerage firm | Rating |
|---|---|
| Dec 23rd, 2020 | |
| Loop Capital | Neutral |
| Jan 8th, 2021 | |
| Mizuho | |
| Jan 13th, 2021 | |
| JPMorgan Chase & Co. | Neutral |
| Jan 14th, 2021 | |
| KeyCorp | Buy |
Baidu stock analysis
Since in July 2020, Baidu has been drawing an uptrend that so far marked an amazing 108.17%. During this uptrend, the price offered some entry points on the breakouts. Latest pullback was last November, when price bounced at $132.26. Currently, the price swings in a consolidation between its last top ($258.73) and its last bottom ($132.26)
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
Since the price surpassed the upper band last Thursday, the price dropped by 7.68%
Relative strength index
After crossing up the line of 70 yesterday, sliced back below with a value of 66.15. This is a signal of weakness for the Baidu shares and it should get us on alert of weakness in the price action
Baidu stock price history
Baidu started trading priced at an adjusted price1 of $6.60 on Aug 2005. Since then, BIDU stock surged by 3,519.24%, with an average of 234.62% per year. If you had invested thousand dollars in Baidu stock on the IPO, it would have a value of $36,192.42 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Baidu stock
Nobody knows how much a stock will be priced tomorrow. However, many stock price predictions are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions post their price target based on the stock price action and the company fundamental data. Most of these predictions follow the release of new financial information by the company, and usually. Again, these estimates are not direct recommendations for individual investors and must not be followed blindly.
Averaging all price targets exposed below, the predicted price for Baidu stock is $260.00. Baidu closed at $238.87 last Friday, so the target price is forecasting a growth by 8.85%.
| Brokerage firm | Price target |
|---|---|
| Dec 23rd, 2020 | |
| Loop Capital | $150.00 → $210.00 |
| Jan 8th, 2021 | |
| Mizuho | $185.00 → $250.00 |
| Jan 13th, 2021 | |
| JPMorgan Chase & Co. | $155.00 → $290.00 |
| Jan 14th, 2021 | |
| KeyCorp | $190.00 → $290.00 |
Earnings and financials
Baidu, Inc. ($BIDU) came out with quarterly earnings of $3.00 per share last November, significantly uplifting the Market consensus estimate of $2.05 per share. This Q3 report represents an earnings surprise of 46.34%. On the contrary, reported sales were $4.2 billion, in line with analysts' forecasts.
Compared to the same quarter last year, EPS was $12.61, so reported EPS means a decrease of -76.21%. Looking at sales, figures merely changed compared to $280.8B same quarter a year ago.Baidu ($BIDU) is hosting the quarterly earnings call late next February. Forecasted for this quarter is $2.63, compared to $3.00 that was reported for Q3.
Baidu performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Baidu ($BIDU) | 26.20% | 81.10% | 94.60% |
Important note:
The opinions given in this post are personal and not recommendations for you to buy or sell shares. The author of this text does not have an understanding of the individual scenarios of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for learning purposes onlyBaidu summary
| Friday, January 15th, 2021 | |
|---|---|
| Open | $245.27 |
| Close | $238.87 |
| Day range | $237.86 - $251.21 |
| Previous close | $249 |
| Session gain | -4.07% |
| Average true range | $20.20 |
| 50d mov avg | $171.62 |
| 100d mov avg | $149.07 |
| 200d mov avg | $131.19 |
| Earnings date | February 25th, 2021 |