Momentum Stock: Baidu, Inc.Michael Vodickaupdated Oct 06, 2010TweetAt GET.com we maintain complete editorial integrity on our content & provide transparent & unbiased information. Companies don't pay us to include their products although we receive a compensation when you successfully apply to products from our partners. See how we make money here.At GET.com we maintain complete editorial integrity.Baidu, Inc. (BIDU) recently hit a new all-time high above $100 on strong Q2 results from late July that included a 13% earnings surprise. With an average earnings surprise of 17% over the last four quarters and rising estimates, BIDU looks like a solid momentum pick.Company DescriptionBaidu, Inc. is an Internet search company based out of China. The company was founded in 2000 and has a market cap of $35 billion.Our last look at Baidu's business came on July 22 when the company reported strong Q2 results that came in ahead of expectations.Second-Quarter ResultsRevenue for the period was up 74% from last year to $282 million. Earnings also came in strong at 35 cents, 13% ahead of the Zacks Consensus Estimate, where the company now has an average earnings surprise of 17% over the last four quarters.The company's strong results were driven by increased spending from existing customers, where revenue per online marketing customer was up 39% from last year.Baidu also scored big on the expenses front, where its traffic acquisition cost (TAC) fell to 9.7% of revenue from 16% last year.Bandwidth costs were also down, falling to 3.5% of revenue from 4.6% last year.Awesome Balance SheetBaidu emerged from the quarter with its pristine balance sheet looking better than ever, with cash and equivalents up $182 million from last year to $610 million with no debt.EstimatesWe did see some movement in estimates off the good quarter, with the current year adding 4 cents to $1.39 and the next-year estimate climbing 8 cents to $2.17, a very bullish 56% growth projection.ValuationIn light of the big gains of the last year, the valuation picture does leave something to be desired, where shares trade with a forward P/E of 56X.2-Year ChartOn the chart, BIDU recently hit a new all-time high after gaining with the market for most of the last 18 months. But in spite of the gains, the stochastic below the chart is signaling that shares are trading safely away from over-bought territory. Look for support from the trend line and short-term low on any weakness, take a look below.Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service. Editorial Disclosure: Any personal views and opinions expressed by the author in this article are the author's own and do not necessarily reflect the viewpoint of GET.com. The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities.