Chinese search engine Baidu, Inc. (BIDU), or as some investors refer to the company, the Google (GOOG) of China, is in a breaking out mode this session. The stock climbed nearly 5 percent Friday morning to $107.45 after rallying 6.1 percent earlier, printing a new all time high of $109.34. Moreover, today’s volume is massive: nearly 24.5 million shares have already traded hands compare to a 3 months average volume of around 11 million shares.
Technically speaking, the shares of BIDU, currently trading at a trailing 12 P/E of 111.60 and a PEG ratio of 1.21, have outperformed the broader S&P 500 Index (SPX) by an impressive 138.59% over the last 52 weeks. The security, which is now attempting to plow its way through the $115 neighborhood, trades approx. 18% above its 50-day moving average of $90.80 and more than 52% above its 200-day moving average of $70.34.
BIDU continues to print new highs, a technical feat that is nothing new to the security. In fact, the ticker has consistently created a series of HH and higher lows since March 2009. Throughout this time the stock, which has seen a few minor dips down off the highs, but all of them were bought, has relied on solid support from its 20,50, and 20 MA trendline, all of which have confirmed the stock’s upward momentum. It’s worth point out however, that the Chinese-language internet search provider trades at a forward multiple of 49, an incredibly rich multiple for a stock. On the other hand, with Baidu’s profits projected to grow at a 40% yearly clip, on average, for the next few years, it’s not difficult to understand the bullish thesis behind the stock’s performance.
At last check, shares of the $37 billion market cap co. were up $5.44 to $107.95, a gain of 5.34%.