Apple Inc. (AAPL), Baidu.com, Inc. (ADR) (BIDU): A Couple Stocks to Buy Before They Rebound

But what will happen to year-over-year net income figures when today’s new levels of spending and investments become last year’s numbers? Net income growth rates could once again match the company’s monstrous revenue growth rates. How? Today’s higher levels of spending will be the new norm; spending, as a percentage of revenue won’t have as much room to increase. This will make comps look healthier. Of course, this might take another 12 months (an eternity for Wall Street). But for truly Foolish investors, 12 months is a breeze.

A bit of patience
Apple Inc. (NASDAQ:AAPL) and Baidu.com, Inc. (ADR) (NASDAQ:BIDU) will likely post poor performance in upcoming quarters as they face off against some insanely tough comps. In fact, analysts expect current-quarter EPS to decline 21.6% and 0.8% for Apple and Baidu, respectively. But zoom way out, and the story looks far better. For both companies, analysts expect EPS growth rates in excess of 20% per annum during the next five years.

If they’re not two stocks to buy outright, Apple and Baidu.com, Inc. (ADR) (NASDAQ:BIDU) at least deserve a spot on your watchlist.

The article 2 Stocks to Buy Before They Rebound originally appeared on Fool.com and is written by Daniel Sparks.

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple Inc. (NASDAQ:AAPL) and Baidu.

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