| Stock (Symbol) | Stock Price | |
Priceline.com (PCLN) |
$1292 |
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| Data is as of | Expected to Report | Sector |
August 19, 2015 |
Nov 2 – Nov 6 |
Retail & Travel |
| Sharek’s Take | ||
 Priceline (PCLN) is growing 20%, but the strong dollar is muting these gains. Gross bookings grew 26% last qtr on a constant currency basis, but just 11% in U.S. dollars. 90% of gross bookings and operating income are from PCLN’s International brands and Int’l bookings growth was 30% (FX-neutral) last qtr (the US grew 1%). Other sterling stats from last qtr include: Room nights booked grew 26%. Rental car days grew 20%. Booking.com has 35% more hotels than it did a year ago. OpenTable, delivered double-digit growth and is poised for international rollout later this year. Kayak delivered strong performance in profitability and just did a partnership with HomeAway to feature more vacation rentals. Next qtr PCLN expects profits to grow 19-26% excluding F/X and analysts expect 9% profit growth including F/X. This stock has been holding in there during tough market conditions. Although I feel PCLN is fairly valued now, this continues to be a 20% grower and could have profit growth accelerate later this year and into 2016. Also, management is buying back $3 billion in stock, around 5% of shares. |
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| One-Year Chart | ||
 PCLN is having a slow growth period in qtrly profits, but its had this happen before. Note in Estimates that profit growth is set to accelerate to 15% 2QtrsOut (and this estimate just jumped from 10%). At 23x earnings this stock is around where it should be. |
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| Earnings Table | ||
 After foreign exchange, PCLN had revenue growth of 7% and flat profit growth last qtr.The company has beaten the street estimates soundly for two straight qtrs and three-of-four. Annual Profit Estimates just increased for the first time since last Summer — good. Quarterly estimates just increased as well. Now 20% profit growth looks to return in 2016 Q1. |
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| Fair Value | ||
 Priceline has sold for a median price of 22x earnings for the last three years. The stock is fairly valued here and has the potential to climb 20% by next year. |
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| Ten-Year Chart | ||
 Great looking ten-year chart and I like the recent basing pattern. I think PCLN is setting up for another run higher. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
8 of 27 |
Priceline is taking a breather right now but with strong internal growth the stock should resume its upward trend eventually. This is a large company that investors can feel secure with, a great stock to buy-and-hold that’s still capable of 20% returns. |
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Aggressive Growth Portfolio
7 of 14 |
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