Priceline.com, Inc. - Momentum

Priceline.com, Inc. (PCLN) is one of the hottest momentum stocks on the Street right now, recently surging to a new all-time high at $428.10 after reporting excellent Q3 results that beat expectations. Throw in rising estimates and a bullish growth projection, and this Zacks #2 rank stock has booked itself plenty of momentum.

Even though PCLN has been surging for most of the last 18 months, shares got an extra boost on Nov 10 after the company reported strong Q3 results that handily beat expectations.

Third-Quarter Results

Revenue for the period was up 47% from last year to $4 billion. Earnings also came in strong at $4.97, 5% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 8.6% over the last four quarters.

The strong results were driven by big international gains, where revenue was up 67% from last year to $531 million. Priceline also benefited from impressive results in hotel offerings, where room nights booked was up 54% from last year. Rental car units were also strong, showing 97% growth in days booked.

Balance Sheet Strong

Priceline also continues to maintain a strong balance sheet, with cash and equivalents of $534 with against $471 million in debt.

Estimates

We saw some pretty bullish movement in estimates off the good quarter, with the current year adding 61 cents to $12.21 and the next year adding $1.87 to $16.47, a bullish 35% growth projection.

Valuation

With a forward P/E of 34X, PCLN trades at a premium to the industry average of 16X.

2-Year Chart

On the chart, PCLN recently surged higher to a new all-time high at $428.10 on the good quarter. Look for support from the trend line and the previous breakout area above $390 on any weakness, take a look below.

Read the Sep 30 PCLN article here

Last Week's Momentum Zacks Rank Buy Stocks

Fossil, Inc. (FOSL) recently surged to a new all-time high at above $70 after reporting an awesome Q3 earnings surprise of 35%. With retails sales showing signs of strength ahead of the holidays, this Zacks #1 rank stock has momentum wrapped up in a box. Read Full Article.

JAKKS Pacific, Inc. (JAKK) recently jumped to a new multi-year high at $19.96 after reporting a 15% Q3 earnings surprise in late October. With a compelling valuation and rising estimates, this Zacks #1 rank stock provides plenty of upward momentum for investors to play with. Read Full Article.

Ameriprise Financial, Inc. (AMP) just hit a new multi-year high at $55.06 after reporting an awesome Q3 earnings surprise of 28% in late October. Estimates have since jumped higher, with the next-year estimate projecting 17% growth, providing some very nice upward momentum for this Zacks #1 rank stock. Read Full Article.

Crocs, Inc. (CROX) just hit a new multi-year high after surging on excellent Q3 results that included a 4% earnings surprise. With an average earnings surprise of 177% over the last four quarters and a bullish growth projection, this Zacks #1 rank stock is a shoe-in for momentum. Read Full Article.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
 
PRICELINE.COM (PCLN): Free Stock Analysis Report
 
Zacks Investment Research