5 Undervalued Cyclical Stocks To Invest In According to Analysts

2. Baidu, Inc. (NASDAQ:BIDU)

PE ratio as of April 18: 12.52

Average Analyst Price Target Upside: 67.04%

Number of Hedge Fund Holders: 48

Baidu, Inc. (NASDAQ:BIDU) is a provider of internet search services and offers its services through two segments, Baidu Core and iQIYI. Baidu, Inc. (NASDAQ:BIDU) was part of 48 hedge funds’ portfolios in the fourth quarter of 2023 with a total stake value of $1.7 billion. Alkeon Capital Management is the biggest shareholder in the company and has a position worth nearly $260.437 million as of Q4 2023. As of April 18, the stock’s PE ratio is 12.52.

Baidu, Inc. (NASDAQ:BIDU) has a consensus rating of Strong Buy, as per the 14 Wall Street analysts that have covered it over the past three months. The average price target of $159.37 represents an upside of 67.04% from the last price of $95.41, as of April 18.

Ariel Investments mentioned Baidu, Inc. (NASDAQ:BIDU) in its fourth quarter 2023 investor letter:

“By comparison, China’s internet search and online community leader, Baidu, Inc. (NASDAQ:BIDU) traded lower alongside Chinese equities as intensifying problems in China weighed on investor sentiment during the period. The company continues to invest heavily in Artificial Intelligence (AI) and recently launched its generative AI, Ernie Bot, aimed at rivaling Open AI’s ChatGPT. While monetization of the new technology is largely dependent on regulatory review, we think Baidu should continue to experience margin improvement with the ongoing implementation of efficiency and profitability initiatives. While some investors remain on the sidelines due to uncertainty surrounding China’s economic growth, government regulations, and the political rhetoric towards Taiwan, we remain enthusiastic about Baidu’s longer-term opportunity for revenue growth and margin expansion across internet search, cloud, autonomous driving, artificial intelligence and online video.”