1 Chinese Growth Stock That's Worth a Second Look

Updated

China's Baidu is one of the most successful Internet companies in the world, and it has certainly made a lot of money for investors since it went public in 2005. Currently trading at around 18 times trailing earnings -- vs. roughly 25 for Google -- Baidu just might be an attractive bargain right now.

There are reasons for hesitation, however. Baidu faces fierce competition, and there are legitimate concerns about China's overall economic health at the moment. And the company concedes that it's in a transitional phase as it attempts to monetize mobile search.

Is now an ideal time to invest in a proven winner at a compelling price? Or is the market accurately reflecting Baidu's diminished future prospects?


We think there are strong arguments on both sides of the debate, though we ultimately lean more toward the bull case. In the detailed slidedeck below, we take a closer look at the various arguments for and against Baidu. The entire slideshow is quite long, but you should be able to move through it in a reasonable amount of time.

To view the entire presentation on Baidu, just click on the arrows within the embedded slideshow below. Alternatively, you can view the presentation by clicking the link below the slideshow.

The Motley Fool Bull/Bear Case for Baidu from

The article 1 Chinese Growth Stock That's Worth a Second Look originally appeared on Fool.com.

John Reeves owns shares of Google. Fool contributor Pamela Peerce-Landers owns shares of Google and Baidu. The Motley Fool recommends Baidu, Google, SINA , and Sohu.com. The Motley Fool owns shares of Baidu and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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