| Stock (Symbol) | Stock Price | |
Priceline.com (PCLN) |
$1067 |
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| Data is as of | Expected to Report | Sector |
October 2, 2013 |
Oct 28 – Nov 1 |
Retail & Travel |
| Sharek’s Take | ||
 I’ve covered Priceline.com for more than a decade now. Rarely — if ever — has it not been on sale. Now the stock is Fairly Valued as other investors have seen the light. Just last quarter PCLN was $814 and had upside of 30% to Fair Value. But after the recent surge, PCLN isn’t on sale anymore. Now the question is what do we do with the stock now? If it’s an abnormally large holding, you could use the strength to sell some shares and diversity. PCLN has also almost doubled in a year without a correction, and this is another reason to take profits. Whatever you do, don’t sell it all. PCLN is a solid stock with the ability to compound 25% a year into the future. |
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| Just One-Year Chart | ||
 This one year chart is perfect. Too perfect. I feel the stock is due for a correction. The P/E is 27. Last quarter the P/E was 21. The stock was a bargain then. |
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| Earnings Table | ||
 Profits increased 24% last quarter on a 27% increase in sales.PCLN beat the street once again. This time the street was impressed, and the stock shot higher. I wasn’t that impressed.Annual Profit Estimates increased some. They have been rising all year.From the looks of quarterly estimates, it seems like PCLN will grow 30% during the next four quarters. That is higher than the 25% I thought it would grow at before seeing this. That’s solid growth. |
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| Fair Value | ||
 Last quarter I wrote “PCLN shouldn’t have a 21 P/E, its should be 27. This stock is undervalued by 30%“. This quarter the stock is at 27 times earnings. I hit it on the head. |
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| Ten-Year Chart | ||
 PCLN has been remarkable for investors. It’s helped mold my career. Profits grew 57% during the last decade, I see that slowing to around half that rate going forward. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
3 of 25 |
Priceline is a great growth stock that all growth stock investors should have as a top holding. But the recent run-up makes this a good time to take profits if you have a large position — just don’t sell a lot. |
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Aggressive Growth Portfolio
3 of 11 |
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