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Baidu.com, Inc. (ADR) (BIDU), National-Oilwell Varco, Inc. (NOV), Cummins Inc. (CMI): 1 Stock to Buy for April

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Earlier this week, I introduced Fools to five different companies I was considering for my Roth IRA in April. I’ve been doing this for more than 20 months now, and my picks are currently outperforming the S&P 500 over the same time frame.

Read below to see what company I’m going to be adding, why I’m passing on the other four, and at the end, I’ll offer access to a special premium report on one of the companies discussed here.

Two companies that are just a little pricey

Now don’t get me wrong. I have nothing against paying what may seem like a high price for companies that I think are top-notch. I bought shares of LinkedIn Corp (NYSE:LNKD) twice within the past year, and each time, the company’s P/E sat above 700!

So far, that’s paid off, as the shares are up substantially. But when there are other stocks that are just as attractive in terms of their innovation, position within their respective markets, and solid management teams, it seems to make a little more sense to move on to the next most reasonable variable: price.

That’s why I’m going to be passing on shares of both LinkedIn and Whole Foods Market, Inc. (NASDAQ:WFM) this month. I have no doubt that there is a bright future for both of these companies — they make up almost 9% of my real-life holdings — but I just think there are better options from my five choices this month.

To be honest, this should be my choice…

If this were the very first month that I was starting this series — or contributing to my Roth IRA — there’s no doubt that Baidu.com, Inc. (ADR) (NASDAQ:BIDU) — the parent of China’s largest search engine — would be my first choice.

With an 80% market share in search, more than 500,000 small-business clients currently signed on (which just scratches the surface of the potential 40 million clients) in China, and growth rates that are impressive in both revenue and earnings, you’d think this stock was trading for sky-high prices.

But nothing could be further from the truth. Baidu.com, Inc. (ADR) (NASDAQ:BIDU) currently trades for just 13 times expected earnings, and even though the stock itself has been cheaper in the past, its trailing P/E has never been so low –ever.

BIDU P/E Ratio TTM Chart

Source: BIDU P/E Ratio TTM data by YCharts.

But there’s a simple fact that I need to keep in mind: I’ve already bought shares of Baidu.com, Inc. (ADR) (NASDAQ:BIDU) three times for this portfolio, and taken as a whole, the company makes up 8% of my overall holdings. Though I’d like to think Baidu.com, Inc. (ADR) (NASDAQ:BIDU) is a shoo-in, nothing is guaranteed, and I wouldn’t feel comfortable putting so much money behind one company.

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