Priceline.com – Aggressive Growth – Zacks Rank Buy
Source: http://www.zacks.com/commentary/11342/Priceline.com+-+Aggressive+Growth+-+Zacks+Rank+BuyPosted on Monday, June 29th, 2009 | In Market Commentary, Stocks to Watch
The Zacks Rank Buys featured in this article are: Priceline.com, Inc. (PCLN), The Gap, Inc. (GPS), TD AMERITRADE Holdings Corp. (AMTD), Knology, Inc. (KNOL), and The Princeton Review, Inc. (REVU).
Priceline.com, Inc. (PCLN) beat Wall Street’s expectations on May 11th. Earnings estimates and shares are on the rise.
Company Description
| < ?DART(15);?> |
Priceline.com Incorporated is a web-based discount travel service. The company allows customers to choose their own prices on air fare, hotels, and other vacation related services. Priceline.com gives providers of the aforementioned services incremental income by booking vacancies that may have otherwise gone unfilled.
Another Surprise
On May 11 Priceline.com released first quarter results that beat analysts’ expectations for the third time in a row. The company generated $462 million in revenues, a 15% jump since last year.
Net income was 83 cents, while analysts were expecting just 73 cents. This 18% surprise was the third consecutive surprise.
CEO Speaks
“We are pleased with the results achieved by Priceline.com in the 1st quarter 2009″, said Priceline.com President and Chief Executive Officer Jeffery H. Boyd. “Despite worldwide recessionary conditions, which continued to adversely impact overall travel demand and pricing, Priceline.com continued to gain market share, with hotel room nights up 36%, rental car days up 15% and airline ticket sales up 28%. Priceline.com also showed improved gross and operating margins in the quarter.”
Estimates Rising
Since the report the consensus estimate for 2009 is up 40 cents to $5.85. The average forecast for next year is up 60 cents to $6.04. These projections represent year-over-year growth of 15% and 14%, respectively.
The Chart
Shares of PCLN are up about 4 times more than the market over the past 4 months.
Read the March 19th Feature Here
Last Week’s Aggressive Growth Zacks Rank Buy Stocks
The Gap, Inc. (GPS) continues is long streak of beating Wall Street’s expectations despite a down turn in the economy.
TD AMERITRADE Holdings Corp. (AMTD) continues to grow as investors return to the markets after a long wait on the sidelines.
Knology, Inc. (KNOL) recently posted a great quarter and analysts are projecting over 100% growth for the next 2 years.
The Princeton Review, Inc. (REVU) recently doubled Wall Street’s earnings expectations and shares continue to climb, along with earnings forecasts.
Read Full Article.Zacks Investment Research
Last 5 posts by Zacks Market Commentaries
- CNP & FPL Ink Pipeline Deal - Analyst Blog - November 20th, 2009
- Buffett Borrows for Rail Acquisition - Analyst Blog - November 20th, 2009
- Stone Energy Outdoes Estimates - Analyst Blog - November 20th, 2009
- Smucker's Beats, Raises Guidance - Analyst Blog - November 20th, 2009
- GameStop Meets Expectations - Analyst Blog - November 20th, 2009
airline ticket sales, cent;, ceo, Jeffery H. Boyd, Market Commentary, overall travel demand, president and chief executive officer, Priceline.com, Princeton Review Inc;, rental car days, Stocks to Watch, The Princeton Review, USD, wall street, Zacks Market Commentaries
 About Zacks Market Commentaries (http://www.zacks.com/)
Zacks Market Commentaries |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.