| Stock (Symbol) | Stock Price | |
Priceline.com (PCLN) |
$634 |
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| Data is as of | Expected to Report | Sector |
November 12, 2012 |
Feb 25 |
Retail & Travel |
| Sharek’s Take | ||
Priceline is consistently dissed. The stock’s one of this decade’s best yet investors aren’t giving the stock the P/E it deserves. Now profits are growing around 25% yet the stock has only a 17 P/E. But that’s been the case with PCLN all decade — the stock’s always undervalued. |
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| One-Year Chart | ||
 PCLN made a big run earlier in the year. Then the company got cautious about European growth and the stock corrected. But last quarter was a winner and the stock deserves to go back to its highs. PCLN’s P/E is 17 even though profits grew 25% LastQtr. A P/E of 25 would send this stock up 50%. |
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| Earnings Table | ||
 Sales grew 17% last quarter and profit growth was 25%.PCLN beat the street by 62 cents but this estimate fell by $1.25 a quarter earlier. Momentum was lost last quarter, now PCLN has gained it back. Annual Profit Estimates increased, but not by a lot. It looks like profits will grow an average of 21% the next four quarters. I think PCLN will beat the street and perhaps hit 25% to 30% profit growth next year. |
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| Fair Value | ||
 PCLN is tremendodusly undervalued. The stock deserves a 27 P/E. |
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| Ten-Year Chart | ||
 Look how remarkable profit growth has been this decade. Yes, the stock’s up but not enough. Yearly EPS Growth is 63% yet the Yearly Stock Growth is 50%. Look for the stock to do some catching up in 2013. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
4 of 16 |
Priceline.com doesn’t get the credit it deserves. But even if the stock just get’s a 21 P/E next year (it’s selling for 21 times 2012 earnings now) the stock’s set to rise 23%. I think PCLN will grow around 25% and should get a 27 P/E. This is a large company that investors can feel comfortable with as a large holding. |
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Aggressive Growth Portfolio
4 of 8 |
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