By Elyse Andrews, Editor of Cabot Wealth Advisory
From Cabot Wealth Advisory 1/29/11 Sign up for free Cabot Wealth Advisory e-newsletter
Priceline.com (PCLN) has been featured in Cabot Wealth Advisory many times. This is what Mike wrote about Priceline in Cabot Top Ten Weekly in mid-November …
“Priceline.com remains one of the handful of liquid (i.e., very well-traded and institutionally owned) leaders of this bull move, and the reason is obvious—business is very good and continually outpaces even the most bullish forecasts. Last week, the company continued that trend by putting up another round of outstanding numbers, and the under-the-hood metrics were also impressive—gross travel bookings leaped 47% from the prior year, international revenues surged 67%, hotel bookings leaped 54% and the firm's newly acquired rental car unit sales nearly doubled! Domestically, growth is slower but steady, and management has been pushing all the right buttons in positioning its brand around the world. Analysts significantly hiked their outlooks following the earnings report (next year's earnings estimate is now $17.53 per share, up from $15.45 one month ago), which would mark a healthy 33% hike from 2010. We like it.
“PCLN hasn't gotten many headlines and the stock isn't the hottest thing on the planet. Nevertheless, shares remain in a firm uptrend, and as you see on this weekly chart, have barely had any hiccups since the summer. Last week's earnings gap was solid—shares rose 8% on nearly triple average volume—but not so powerful that we think it'll be all up from here for PCLN. A pullback of a few percent is possible, and would be buyable if it comes.”
After the write-up, PCLN meandered for nearly two months before taking off on big volume at the beginning of January. Earnings are out in mid-February, so watch closely to see how the stock reacts. Click here for more information.
By Elyse Andrews, Editor of Cabot Wealth Advisory
From Cabot Wealth Advisory 11/20/10 Sign up for free Cabot Wealth Advisory e-newsletter
If you are looking for a stock in the travel arena though, I have one for you today: Priceline.com (PCLN), which was recently recommended in Cabot Top Ten Weekly by Editor Michael Cintolo:
“Priceline.com remains one of the handful of liquid (i.e., very well-traded and institutionally owned) leaders of this bull move, and the reason is obvious--business is very good and continually outpaces even the most bullish forecasts. Last week, the company continued that trend by putting up another round of outstanding numbers, and the under-the-hood metrics were also impressive—gross travel bookings leaped 47% from the prior year, international revenues surged 67%, hotel bookings leaped 54% and the firm's newly-acquired rental car unit sales nearly doubled! Domestically, growth is slower but steady, and management has been pushing all the right buttons in positioning its brand around the world. Analysts significantly hiked their outlooks following the earnings report (next year's earnings estimate is now $17.53 per share, up from $15.45 one month ago), which would mark a healthy 33% hike from 2010. We like it.”
“PCLN hasn't gotten many headlines and the stock isn't the hottest thing on the planet. Nevertheless, shares remain in a firm uptrend, and have barely had any hiccups since the summer. Last week's earnings gap was solid—shares rose 8% on nearly triple average volume—but not so powerful that we think it'll be all up from here for PCLN. A pullback of a few percent is possible, and would be buyable if it comes.”
Click here to learn more about PCLN and other leading stocks recommended by Cabot Top Ten Weekly.
Elyse Andrews
Editor of
Cabot Wealth Advisory Elyse Andrews edits Cabot Wealth Advisory, a free email newsletter that offers independent, no-nonsense investment advice on how to build long-lasting wealth written by Cabot's analysts and editors. Every Saturday, Elyse writes the Weekend Digest, which includes her column and a summary of Cabot Wealth Advisories that readers may have missed during the week. Elyse is also a regular contributor to The
Iconoclast Investor, a blog for Cabot editors and readers to share their views and interact with each other.