8 Best Communication Stocks To Buy According to Analysts

2. Baidu, Inc. (NASDAQ:BIDU)

Average Price Target Upside: 40.33%

Number of Hedge Fund Holders: 42

Baidu, Inc. (NASDAQ:BIDU) is a Chinese tech company focused on AI, cloud computing, and internet services, with a strong presence in the search engine market. It has advanced AI with models like ERNIE Bot and ERNIE 4.0, which enhance its products. It takes the 2nd spot on our list of best communication stocks according to analysts.

It is also the parent company of iQIYI, an OTT streaming platform which is often called the “Netflix of China.” It generates revenue mainly through subscriptions, although advertising also plays a role. Despite strong competition in China’s streaming market, iQIYI remains a key player due to its brand recognition and large user base.

While Baidu’s (NASDAQ:BIDU) stock price performance has been underwhelming in the current year, it is a fundamentally strong company with strong growth potential. While its online advertising revenue is still weak, its AI Cloud business is growing rapidly, and its autonomous driving segment shows long-term growth potential.

Despite the the decline in search engine revenue, the company still holds over around 56% of the market share in China as of September according to GlobalStats stat counter.

Even though Baidu’s (NASDAQ:BIDU) stock is still in a downtrend, it shows signs of recovery. Despite its challenges, it remains undervalued with a forward price-to-earnings multiple of 8.22x, which shows a nearly 39% discount to its sector median.