| Stock (Symbol) | Stock Price | |
Priceline.com (PCLN) |
$640 |
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| Data is as of | Expected to Report | Sector |
March 7, 2012 |
May 7 |
Retail & Travel |
| Sharek’s Take | ||
Priceline.com’s (PCLN) made a big time move so far in 2012 — jumping 34% from $475 to $640. Although that makes the stock seem high, the stock still only has a P/E of 21 and has lots of upside left. Strength in hotels lead the way last quarter (up 53%), followed by car rentals (+34%) and airfare (+6%). International sales continue to explode — up 63% for the quarter. |
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| One-Year Chart | ||
 The reason the stock is up so much since last quarter is PCLN’s P/E has gone from 16 to 21. I feel a 25 P/E is reasonable this year. The problem now is the stock’s been on a parabolic move, and will be susceptible to a swing down if profit taking sets in.PCLN’s estimated Long Term Growth Rate just dropped from 29% last quarter to 23% now. It shouldn’t have. |
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| Earnings Table | ||
 Profit growth slowed a bit last quarter — from 87% 2QtrsAgo to 58% LastQtr. Sales rose 35%, compared to 45% the quarter earlier.PCLN beat the street by 32 cents and is on a roll beating estimates. Annual Profit Estimates rose a fairly good amount. Quarterly estimates look awesome — and these numbers keep growing and growing. 50% profit growth could be coming in 2012. |
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| Fair Value | ||
 I feel PCLN should get a P/E of 35 and remains extremely undervalued. |
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| Ten-Year Chart | ||
 Priceline stock hit an All-Time High this year. The stock was up here in the clouds back in the dot-com bubble of the late 1990s. Now time has erased that prior high from the chart.Profits have grown 63%the past ten years, but the stock hasn’t. PCLN has some catching up to do. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
3 of 19 |
Priceline looks amazing but I feel the stock could be due for a slight correction after the parabolic move. I’m thinking of loading up if the stock gets down to $550. I wouldn’t sell any shares here cuz the stock could be headed for $750.
PCLN is ranked 3rd in the 19 stock Growth Portfolio and 9 stock Aggressive Growth Portfolio Power Rankings. Apple (AAPL) comtinues to hold onto #1 and Baidu.com (BIDU) is #2 because it hasn’t gone parabolic in a while. |
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Aggressive Growth Portfolio
3 of 9 |
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