| Stock (Symbol) | Stock Price | |
Priceline.com (PCLN) |
$701 |
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| Data is as of | Expected to Report | Sector |
March 18, 2013 |
May 6 |
Retail & Travel |
| Sharek’s Take | ||
 Priceline stock is doing well. Sitting around $700, the stock is only 10% below its all-time high. Still, $700 isn’t high enough. The stock’s P/E is only 18, and I feel PCLN should have a P/E in the mid-20s. Profits are growing at that rate. Earlier in the year Priceline agreed to acquire Kayak.com, and that should be a catalyst for future growth. Although this stock is high, its set to go even higher. |
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| One-Year Chart | ||
 You want to know how crazy the stock market can be? This stock went from $750 to $550 to $700. Profit growth used to be 60% 4QtrsAgo, now its around 25%. Looks like mid-20s growth will continue. That’s a slowdown from what I’m used to seeing. I’ve covered PCLN for a decade. |
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| Earnings Table | ||
 Revenue was up 20% last quarter, international bookings rose 40%. PCLN had 26% profit growth last quarter.PCLN beat the street by 23 cents which was good but not great considering the company made $6.77 in the quarter. Annual Profit Estimates increased. Quarterly profits are set to grow in the 20% to 27% range, but those estimates have been growing each quarter and PCLN has been beating the street at in the end as well. Perhaps 30% growth is achievable? |
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| Fair Value | ||
 PCLN is worth 27 times earnings, the stock has huge upside. It’s not high enough. |
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| Ten-Year Chart | ||
 What’s more remarkable than this ten-year chart? That fact PCLN still doesn’t get the respect it deserves. An 18 P/E for a 26% growth isn’t respect. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
2 of 14 |
Priceline isn’t the 40% grower it used to be. It can still be counted on for 25% growth, and that should equate to a 25 P/E. With a current P/E of 18, this stock’s not high enough. |
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Aggressive Growth Portfolio
2 of 8 |
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