| Stock (Symbol) | Stock Price | |
Priceline.com (PCLN) |
$512 |
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| Data is as of | Expected to Report | Sector |
September 27, 2011 |
Nov 7 |
Retail & Travel |
| Sharek’s Take | ||
Priceline.com’s (PCLN) profit estimates surged higher this quarter. Last quarter the company was expected to earn around $26 a share in 2012, now its $30 a share. The 2013 number was around $30, now it’s around $36. That’s some serious increases. Even with the stock around $500, the stock is undervalued because of the money its making/expected to make. Bookings rose an amazing 70% last quarter. International bookings lead the way with a 98% gain, domestic bookings rose 13%. Priceline continues to hit on all cylinders. |
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| One-Year Chart | ||
 I like the base PCLN is building. The stock hasn’t moved for six months. I think the stock will breakout and bolt higher as soon as the market kicks back up.
The numbers in PCLN’s one-year chart continue to look perfect. I love the fact 78% profit growth from last quarter is expected to be followed by 74% next quarter. With a P/E of only 23, PCLN is very undervalued. |
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| Earnings Table | ||
 Profits grew 78% on a 44% increase in sales. Growth is good.
PCLN is blowing away profit estimates — last quarter’s beat was by 62 cents. That was way above the 22 cent beat 2QtrsAgo. This stock should be timely right now, but a poor stock market is holding PCLN back. Annual Profit Estimates shot higher. Next year’s estimate rose by almost 5 bucks. 2013’s estimate rose by 6 bucks. These figures are fantastic — the increase in Annual Profit Estimates is the headline this quarter. Quarterly estimates are amazing. Next quarter’s estimate jumped by more than a dollar and now 74% growth is expected. |
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| Fair Value | ||
 With the economy now uncertain, I’m taking PCLN’s Fair Value P/E down a bit from 42 to 40. Upside is substantial if the economy continues on the current pace. |
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| Ten-Year Chart | ||
 In the ten-year view, the stock is now building a base. Looking out to 2012, this $500 or so stock could earn $30 next year. Even a P/E of 25 on $30 in earnings is $750. That’s around a 50% move higher. So PCLN is basing and with the strong profit power the stock has, Priceline.com is setting up to breakout and bolt higher. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
2 of 21 |
Priceline’s profit picture looks perfect. The company is growing at 70% and has a P/E in the low 20s. This continues to be one of the best investments of our generation.
In my Power Rankings, PCLN is the #2 stock in the 21 stock Growth Portfolio and also #2 in the 12 stock Aggressive Growth Portfolio. Apple (AAPL) is #1 because its P/E is lower. |
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Aggressive Growth Portfolio
2 of 12 |
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