BIDU - Baidu, Inc.
| Previous Close | 168.11 |
| Open | 170.54 |
| Bid | 171.59 x 800 |
| Ask | 172.50 x 800 |
| Day's Range | 169.83 - 174.27 |
| 52 Week Range | 153.78 - 284.22 |
| Volume | 3,239,435 |
| Avg. Volume | 3,037,043 |
| Market Cap | 59.729B |
| Beta (3Y Monthly) | 1.32 |
| PE Ratio (TTM) | 13.35 |
| EPS (TTM) | N/A |
| Earnings Date | N/A |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | N/A |
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- InvestorPlace•3 days ago
8 Best Stocks to Invest In Should the Trade War Thaw
Diving into a discussion about the U.S.-China trade war is a tough business, so allow me this caveat: anything can happen, especially with our current administration. Nevertheless, those who are seeking to capitalize on the best stocks to invest in may be onto something. First, the obvious statement: neither side wants to budge an inch. On the one hand, decades of superior economic growth emboldened Chinese pride and nationalism. Naturally, this sentiment has translated into a significant military buildup. Backing down means losing credibility, something the Chinese leadership cannot afford. On the other hand, the U.S. must protect its intellectual property and its national-security interests. According to author and noted China critic Gordan Chang, controversial tech company Huawei stole technology from Cisco Systems (NASDAQ:CSCO) and T-Mobile (NASDAQ:TMUS). Furthermore, Chang claims that the Chinese government and military supported Huawei's thievery. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Under normal circumstances, we should not expect an imminent resolution, confusing matters about what to invest in now. However, we don't live under any sense of normalcy. Plus, headwinds on both sides suggest the best course of action is a workable truce. Despite their recent fiery rhetoric, the Chinese government harbors serious fears. The latest economic data indicates declining growth, job losses in U.S.-tariff targeted industries and deteriorating consumer sentiment. Moreover, the ultra-rich are getting increasingly tense about future economic prospects. For Americans, we're on the verge of unprecedented instability unless the government shutdown ceases. Additionally, President Trump and the Republicans have a political incentive to negotiate a truce with China. Scoring a victory here means assuaging the electorate, many of whom have turned their backs. * Top 10 Global Stock Ideas for 2019 From RBC Capital Therefore, the pieces for a negotiation to occur is present. If so, here are the best stocks to invest in: ### Alibaba (BABA) Among Chinese stocks, none get more attention than dominant tech giant Alibaba (NYSE:BABA). After a series of bumpy trading following its initial public offering, BABA stock skyrocketed in 2017. Around the middle of last year, Alibaba appeared on track to make a repeat performance. Unfortunately, the escalating U.S.-China trade war derailed the company, knocking it off its perch as one of the best stocks to invest in. That said, BABA is enjoying a strong start to the new year, gaining over 16%. Of course, Alibaba also posted strong numbers in January 2018. But for those seeking what to invest in now, the tech giant's troubles offer an enticing entry point. As our own Dana Blankenhorn argued, Alibaba offers underappreciated cloud solutions. Combined with U.S.-China optimism, BABA could surprise in 2019. ### Baidu (BIDU) Another one of China's best stocks to invest in, internet stalwart Baidu (NASDAQ:BIDU) has grown exponentially since its 2005 IPO. It, too, suffered a few years of choppy trading until it regained decisively bullish momentum in 2017. While it got off to a turbulent start last year, optimists hoped for a repeat performance. Unfortunately, the U.S.-China trade war had other ideas. Moreover, BIDU stock was particularly affected by the ensuing volatility. In the second half of 2018, shares dropped a staggering 33%. For speculators eyeballing what to invest in now, BIDU stock has substantial upside potential. Unlike other Chinese companies, Baidu has yet to enjoy a noteworthy dead-cat bounce. Therefore, you're getting the internet firm close to the bottom. * 7 Dark Horse Stocks You Really Need to Look at for 2019 Of course, the caveat is that we're assuming no other economic or geopolitical event suddenly dampens enthusiasm. That's a big risk, but the rewards may justify it for adventurous investors. ### Tencent (TCEHY) Tencent (OTCMKTS:TCEHY) follows a familiar trajectory with its Chinese compatriots. Following a dramatic rise against its IPO, Tencent's mercurial rise slowed noticeably between 2014 and 2016. However, 2017 produced a monster result for the popular internet-services company. Unfortunately for shareholders caught up in the enthusiasm, TCEHY stock peaked in January of last year. Since then, it has largely been a downhill slide. Overall, Tencent lost more than 26% in 2018. But what makes TCEHY one of the best stocks to invest in is momentum. Since hitting bottom on Oct. 29, shares have jumped more than 33%. More importantly, the bulls have carried this enthusiasm into the new year, moving toward double-digit territory. While you're not getting the biggest discount with Tencent, you're receiving in its place more stability and confidence. Plus, a diplomatic headway will almost surely attract a surge in investor dollars. ### China Green Agriculture (CGA) At first glance, China Green Agriculture (NYSE:CGA) doesn't meet the criteria for what to invest in now. For starters, CGA has become a veritable penny stock, with shares currently trading for less than a can of soda. Plus, the U.S.-China trade war directly and negatively impacts the agricultural industry. But as a contrarian, CGA is also a candidate among the best stocks to invest in. The reason? Fundamentally, it can absorb many of the troubles associated with the U.S.-imposed tariffs. Management is sitting on $153 million in cash, while it only has $7.2 million in debt. Despite obvious pressures, CGA has enjoyed consistently positive free cash flow. * The Bogle Way: 7 Index Funds for Passive Investors Still, a resolution will go a long way. The tariffs have negatively impacted growth. In its most recent quarter, CGA suffered a 6.6% decline in revenue year-over-year. But based on its price action, we may have seen a bottom. ### Skyworks Solutions (SWKS) Should we enjoy a breakthrough in the trade war, Chinese companies won't be the only ones to benefit. Several American organizations, including Skyworks Solutions (NASDAQ:SWKS), offer plenty of upside potential. As a manufacturer of smartphone components, Skyworks is heavily levered towards China. According to CNBC, 83% of its revenue originates from the world's second-largest economy. Based on that statistic, it's no surprise that SWKS stock tanked last year, giving up 29%. That said, Skyworks is enjoying a positive start to the year, gaining 5%. This sets up an intriguing case for speculation. On one hand, the company has likely suffered severe damage due to the trade war. China is the biggest smartphone market in the word. On the other hand, SWKS will easily become one of the best stocks to invest in following a truce. Like the other names on this list, it's a tough call, but the possible rewards are tempting. ### Qualcomm (QCOM) From a glance at its technical chart, Qualcomm (NASDAQ:QCOM) doesn't belong on a list for what to invest in now. Last year, QCOM stock lost shareholders 8% of market value. Even worse, since peaking around mid-September, the tech giant has slipped more than 26%. Of course, Qualcomm is a major player in the smart-device sector. Therefore, the ongoing U.S.-China trade war levers an onerous headwind. At the same time, if American and Chinese leaders agree to a practical solution, QCOM would suddenly look attractive. More importantly, Qualcomm has other avenues to explore, namely the 5G rollout and autonomous-vehicle technology. The former is already a reality: we're just talking about when global integration occurs, not if. * Take Buffett's Advice: 5 Vanguard Funds to Buy The latter component is a little trickier because autonomous vehicles will take time to implement. However, QCOM does have reasonable assurances of a long-term revenue stream, which helps buffer the trade-war waves. ### Micron Technology (MU) When the international community greenlighted China's insatiable thirst for all things tech, semiconductor firms flourished. But now that the U.S.-imposed tariffs dampened enthusiasm, companies like Micron Technology (NASDAQ:MU) are feeling the heat. Its price chart tells you all you need to know. In the first half of 2018, MU stock was cruising to another outstanding year, gaining over 25%. But the second half told another tale, with shares sliding over 38%. With neither side budging, Micron ended last year down nearly 24%. Betting on diplomacy isn't the safest thing to do, especially with the Trump administration. However, an unexpected breakthrough could make MU one of the best stocks to invest in. Currently, the company generates over half its revenue in China, so a truce is crucial. ### United Continental (UAL) With the world's two largest economies going at it, you'd think international airliners would stall. However, United Continental (NASDAQ:UAL) has surprisingly been one of the best stocks to invest in. Last year, UAL stock returned a surprisingly robust 23%. As it turns out, diplomatic troubles don't always translate downstream. Demand for flights to Asian countries have performed relatively well. Moreover, UAL has witnessed a surge for European travel, as well as domestic routes. Plus, a steep decline in fuel prices for the final quarter of 2018 provided an earnings boost. * The 3 Best Telecom Stocks to Buy to Fortify Your Portfolio This Year All that said, if UAL wishes to see continued momentum, a truce holds the key. On average, a Chinese tourist spends nearly $7,000 in the U.S. Therefore, sustained tensions between the two countries along with economic damage won't do our tourism industry any good. As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy Compare Brokers The post 8 Best Stocks to Invest In Should the Trade War Thaw appeared first on InvestorPlace.
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7 Stocks to Buy as the Dollar Weakens
The financial markets had a turbulent and volatile 2018, with many storylines and themes changing multiple times over the course of the year. But one financial market theme that remained constant through the volatility was a strong dollar. The U.S. Dollar Index, which measures the strength of the U.S. dollar against a basket of foreign currencies, bottomed around 90 in early 2018 during global financial market turmoil. Over the rest of the year, the U.S. Dollar Index steadily gained towards the upper 90's, even amid the big selloff in late 2018. This trend has changed course over the past month. Specifically, the U.S. Dollar Index peaked around 98 in mid-December, and has since consistently fallen towards 95, its lowest level since October. Why? There's renewed optimism regarding a trade war resolution, and hope that while the global economy is slowing, it's not slowing as much as feared. Also, the Fed has grown increasingly dovish over the past few weeks, signalling fewer rate hikes than previously anticipated. InvestorPlace - Stock Market News, Stock Advice & Trading Tips But a weaker dollar is good news for some companies, such as multinationals with significant overseas sales exposure and foreign stocks with mitigated sales exposure to the U.S. Many of these stocks were hampered by a strong dollar in 2018. But, if the dollar continues to weaken in 2019, these stocks could have room to run higher as a major headwind is removed from the equation. * 10 Growth Stocks With the Future Written All Over Them With this in mind, let's take a look at seven stocks to buy as the U.S. dollar weakens. ### Stocks to Buy as the Dollar Weakens: McDonald's (MCD) Source: Shutterstock At the top of the list is McDonald's (NYSE:MCD), the multinational food giant which not only gets a majority of its revenue and profits from international markets, but whose international operations are also more profitable and growing faster. Therefore, as the dollar weakens and those businesses start to earn more in term of U.S. dollars, MCD stock should benefit. Last year, roughly 65% of the company's total revenues and nearly 60% of total operating profits came from outside of the U.S. Moreover, comparable sales growth in the U.S. was just 3.6% last year, versus 5% and up overseas. Also, U.S. company operated margins hovered around 16% in 2017. International company operated margins were north of 17%. Overall, as goes the international business, so goes McDonald's. Thus, as the international business becomes increasingly valuable against a weakening dollar, MCD stock should naturally rise. ### Stocks to Buy as the Dollar Weakens: Alibaba (BABA) Source: Shutterstock The plunge in Chinese stocks started in early 2018, when the U.S. dollar strengthened significantly against the Chinese yuan. That strengthening diluted the value of U.S. listed Chinese stocks, and that dilution -- on top of concerns regarding weakening growth -- caused all Chinese stocks to drop in a big way. That included shares of Chinese internet giant Alibaba (NYSE:BABA). But the fundamentals underlying Alibaba remain very strong. This is still the premiere e-commerce and cloud company in a 6%-plus growth economy supported by healthy demographic trends. Despite those tailwinds, the stock now trades at a rather anemic sub-30x forward multiple (revenues grew by over 50% last quarter). * 7 Oversold Small-Cap Stocks With Massive Profit Growth All this stock needs to explode higher is a few good catalysts. One such catalyst is a weakening dollar. The other is positive progress on U.S.-China trade talks. Those two are tied together, and both are starting to move in favor of Alibaba. As such, now seems like as good a time as any for a big BABA stock around. ### Stocks to Buy as the Dollar Weakens: Baidu (BIDU) Source: Shutterstock Another Chinese stock that plunged with a strengthening U.S. dollar but is now set to rebound as the dollar weakens is Baidu (NASDAQ:BIDU). For those who are unaware, Baidu is the company behind China's leading search engine, and as such, is often called the Google (NASDAQ:GOOG) of China. As the Google of China, Baidu has established itself as the backbone of China's burgeoning internet economy. There have been some hiccups in the road, but the company has always successfully navigated around them and -- much like Google- - Baidu has found itself as a largely consistent 20%-plus revenue grower. At current levels, BIDU stock is pretty cheap with a mere 15x forward multiple. Google trades at over 20x forward earnings, and Google is growing revenues at a slower clip than Baidu. Thus, the 15x forward multiple on BIDU stock doesn't make much sense and should ultimately be corrected with a few positive catalysts. One such positive catalyst will be the weakening of the U.S. dollar. If dollar weakness persists and U.S.-China trade talks continue to make progress towards a resolution, BIDU stock could be in store for a major rally from multi-year lows. ### Stocks to Buy as the Dollar Weakens: Coca Cola (KO) Source: Coca-Cola One multinational giant that is set to benefit in a sizable way from U.S. dollar weakness is Coca Cola (NYSE:KO). Much like McDonald's, most of Coca-Cola's revenues, profits, and growth come from international markets. Specifically, last year, only ~25% of the company's revenues came from North America. Presumably, most of that was from the United States. Still, at most, the U.S. represented just about 20% of Coca-Cola's total revenues in 2017. Roughly a third of operating profits came from North America, so maybe about 25% came from the U.S. Meanwhile, volume growth in North America was flat, while it was positive in some other international geographies. * Top 10 Global Stock Ideas for 2019 From RBC Capital Broadly speaking, then, the KO growth story is one led and driven by international growth. As the dollar weakens, that international growth becomes more valuable in terms of U.S. dollars, and the entire KO growth story becomes more valuable, too. As such, dollar weakness should lead to a KO stock rally. ### Stocks to Buy as the Dollar Weakens: Netflix (NFLX) Source: Shutterstock Although this stock is often viewed as being in a different category than McDonald's and Coca Cola, streaming giant Netflix (NASDAQ:NFLX) actually shares a few prominent parallels with the aforementioned consumer staples giants. Namely, all three are international driven growth stories that benefit from a weaker dollar. Netflix is still growing by leaps and bounds in the U.S. But, the majority of the growth is happening outside of the U.S. Last quarter, the U.S. streaming business grew revenues by 25% with just over 1 million net ads. In contrast, the international streaming business grew revenues by nearly 50% with almost 6 million net ads. Also, when investors and analysts talk about how big Netflix can be, those discussions almost entirely revolve around the international market, since the consensus belief is that the U.S. market is nearing saturation. Overall, Netflix is a multinational giant with an international driven growth story. As such, this company and stock are winners when the dollar weakens. ### Stocks to Buy as the Dollar Weakens: Tesla (TSLA) Source: Tesla When talking about growth giants with international driven growth stories, streaming giant Netflix and electric vehicle pioneer Tesla (NASDAQ:TSLA) fall into the same boat. Tesla had a breakthrough back half of 2018 as the company achieved a sizable profit for the first time in several years -- and did so while accelerating Model 3 production and delivery to mainstream levels. But all those positive developments happened almost entirely on the domestic front. The Model 3 has yet to really scratch the surface internationally. * 5 Fallen-Angel Stocks That Have Been Oversold That will change in 2019. One of Tesla's biggest focus is producing and delivering Model 3 vehicles all around the world this year. As the company does this, the TSLA growth narrative will become increasingly internationally driven. The more internationally driven this growth narrative becomes, the more a weak dollar will help TSLA stock. ### Stocks to Buy as the Dollar Weakens: Weibo (WB) Source: Shutterstock Back to the list of Chinese stocks to buy before they benefit from a weaker dollar. There is a lesser known but just as compelling Chinese stock: social-media giant Weibo (NASDAQ:WB). Many investors and analysts like to call Weibo the Twitter (NYSE:TWTR) of China, given overlaps in the companies' core social media platforms. Those comparisons make sense. But, Weibo is much bigger (nearly 450 million monthly active users versus under 330 million at Twitter). Weibo is also growing more quickly (44% revenue growth last quarter, versus 29% at Twitter), and is more profitable (42% adjusted EBITDA margins last quarter, versus 39% at Twitter). Despite Weibo being bigger, faster growing, and more profitable, Twitter stock is deemed more valuable and expensive by the market. Weibo has a $12 billion market cap. Twitter is valued at essentially twice that. Weibo stock trades at 17 forward earnings. Twitter's forward multiple is above 35. Overall, Weibo stock is just way too cheap to ignore here. And all it will take for a rip-your-face-off rally is a few positive catalysts. A weakening U.S. dollar is one. Positive trade talks is another. Stabilizing economic growth in China is a third. If all those boxes get checked off, this stock could soar in a big way. As of this writing, Luke Lango was long BIDU, GOOG, NFLX, TSLA, WB, and TWTR. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post 7 Stocks to Buy as the Dollar Weakens appeared first on InvestorPlace.
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Weibo Stock Looks Poised to Lead a Rebound of Chinese Equities
Calling the past few months challenging ones for owners of Weibo (NASDAQ:WB) stock is a considerable understatement. They've been miserable. Weibo stock price has been more than cut in half since February's high, and while a broad rout of most high-profile Chinese stocks like Alibaba Group Holding (NYSE:BABA) and Baidu (NASDAQ:BIDU) was the driving force of the selloff, that's of little solace to owners of Weibo stock. Some green shoots are starting to push through for many Chinese names, however. And, with solid fundamentals already (or still) in place for the company, Weibo stock looks better positioned than any of its peers to lead the recovery effort. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 A-Rated Stocks the Smart Money Is Piling Into But there's one huge technical hurdle ahead for WB stock that will make or break the budding rebound. ### What's Weibo? WB is often called the Twitter (NYSE:TWTR) of China, and though the characterization isn't off-base, it's not entirely complete. With more bells, whistles and opportunities to personalize user interfaces than Twitter, Weibo is also a great deal like Facebook (NASDAQ:FB). Arguably, Weibo is a hybrid of the Western world's two most popular social-networking sites. And, much like Facebook and Twitter, the young-ish platform is experiencing tremendous revenue and profit growth. Last quarter's top line grew 48% year-over-year, to $409 million, and its user base expanded by 19%. Both figures extended long-standing uptrends that analysts believe will persist for the foreseeable future. The upward revenue and earnings trajectory, however, have done little to prevent the decline of Weibo stock price. Blame nervous investors. More driven by presumption than facts at the time, investors feared that new tariffs imposed by President Trump on China would cause the country's already-fragile economy to outright implode. It did end up running into a headwind, but it turned out to be manageable. And Weibo, whose appeal has been enhanced by its relative newness, has been able to grow regardless of China's macro environment. Investors' misperceptions about China in general and Weibo stock in particular are beginning to be corrected. But WB stock needs one more good shove to kick off what should become a self-sustaining rally. That catalyst is well within reach. ### The Chart of WB Stock Price The chart of Weibo stock, at first glance, appears to be ugly. WB stock price peaked near $140 in February, and by October, it was trading near $53. Since then, however, subtle but important bullish clues have materialized. One of them is the development of a horizontal support level just above $53, which has led to the first higher lows in nearly a year. That horizontal floor has also allowed Weibo stock to punch through a pair of falling resistance lines that had pushed the shares lower for at least part of the multi-month setback. There's one more ceiling to clear, however, before the tide turns more in favor of the WB stock price than not. That is the 100-day moving average (depicted by the purple line on the chart below), which stamped out the breakout effort that emerged in early December. That thrust didn't start in the best of circumstances. At the time, the stock market was poised to embark on a major correction, and China's future was still in question. The majority of China's most familiar stocks were far from ready to recover, leaving Weibo at a major disadvantage. Never even mind the big gap left behind by an overheated, one-day gain of Weibo stock. Matters have changed dramatically since then, setting the stage for what could be a dramatic rebound rally of WB stock that may well lead other Chinese names out of similar funks. ### One Final Word on Weibo Stock While not overwhelmingly bearish towards WB stock, the financial advice and news industry hasn't exactly been fond of Weibo lately. Morgan Stanley downgraded WB stock on Tuesday, and though no scathing commentaries have been penned about the company in recent weeks, few have been bullish either. Take it all with a grain of salt. News coverage has been more reactive than proactive in recent weeks, with analysts and the media chasing trends rather than leading or causing them. To that end, if Weibo stock can just push past its technical hump, don't be surprised to then see the headlines about it take a decidedly more optimistic tone. That, of course, will fan any bullish flames if and when they materialize. Weibo stock just has to clear that 100-day moving average line first. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post Weibo Stock Looks Poised to Lead a Rebound of Chinese Equities appeared first on InvestorPlace.
