Skip to main content

PCLN STOCK WRITE UP


PCLN (THE PRICELINE GROUP)

  • P/E: 40.6
  • GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $1.64
  • SECTOR: CONSUMER SERVICES
  • ASSETS-LIABILITIES: 2
  • DIVIDEND: none

Priceline is a vacation-booking company, offering services for flight reservation, hotel reservation, and car rental in one convenient place. In recent years, Priceline's revenues have grown above Expedia's, another major competitor in the field. They recently reported earnings on 5/9/17, and the recent market dip has provided an opportunity to buy shares at a discounted price.
Compared to the comparable 2016 quarter, Priceline increased revenue by 13%. GAAP net income also increased by a substantial amount. The company also increased spending across the board, from advertising to “general and administrative.” Part of the growth in income is a substantial decrease in what the company reports as “cost of revenues.”
Glenn Fogel, former investment banker and Harvard Graduate, is the group's CEO as of December 2016. Subsequent to his appointment to the office, Priceline acquired the Momondo group in 2017, which is a UK website for travel metasearch. Previously, the company acquired Kayak, another metasearch company, and opentable, a restaurant booking app.
After the most recent quarter, the company set its profit guidance below wall street expectations, according to seekingalpha. Between 2008 and 2016, the number of travelers who booked trips online rose approximately 50% to 64 million, so wall street expectations have risen for travel stocks, consequently driving up share prices. Priceline has been able to increase their revenue without cutting jobs or marketing budget. If Priceline can keep up with these elevated Wall street expectations, shares will continue to rise. Priceline's price-to-earnings multiple is below two of its closest competitors, TRIP, and EXPE.
Priceline has a clean balance sheet, an efficient business model producing income from revenue without sacrificing spending that is essential to the business, and a new CEO who has already made a large acquisition to expand company exposure overseas. This stock's success is reliant on the perceived wealth of consumers, as people who do not feel they have money will not travel. Priceline has been able to produce earnings consistent with expectations to keep its price-to-earnings multiple below competitors.










Labels:

Comments

Post a Comment

Popular posts from this blog

PXD STOCK WRITE UP

 PXD (PIONEER NATURAL RESOURCES) P/E: N/A GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.67 SECTOR: ENERGY MINERALS ASSETS-LIABILITIES: 1.58 DIVIDEND: .04% Pioneer Natural Resources has recently made the jaw-dropping switch from negative EPS to positive with its last quarter. Situated in the largest oil-producing region in the US, the company is utilizing its good fortune to produce profits. The company has a good balance sheet, a wealth of resources, and a business model which has afforded it growth. This last quarter does not mark the first occasion on which Pioneer has posted a profit. In 2014, and 2012, Pioneer posted a positive EPS for the full year. While the 2016 oil and gas revenues have grown from 2015, the 2014 and 2012 levels were higher. The company's revenue from oil and gas is largely based on market prices. In order to mitigate the market volatility, Pioneer has made efforts to reduce their cost of production, according to their earnin...
1 comment
Read more

CLS STOCK WRITE UP

CLS (CELESTICA) P/E: 15.1 GAAP DILUTED EPS Y-O-Y GROWTH LAST QUARTER: $.14 SECTOR: ELECTRONIC TECHNOLOGY ASSETS-LIABILITIES: 1.78 DIVIDEND: none Celestica, a spinoff from IBM, manufactures electronics and provides supply chain services for a variety of businesses. The company has successfully improved upon its operating margins and revenue during its last fiscal year. Reporting April 20 th before market open, the company will try to beat Wall street expectations of $.28 and its own guidance of $.24-$.3. Celestica provides services for the communications, consumer, server, and storage industries, as well as working in diversified companies. This wide array of services gives Celestica the opportunity to expand on revenue when one of its segments is lagging. Rather than developing new products to boost revenue, Celestica must rely on increasing customer satisfaction by managing supply chains well for its clients. In order to showcase their services,...
Post a Comment
Read more

GOOG STOCK WRITE UP

GOOG (ALPHABET INC) P/E: 31.7 GAAP DILUTED EPS GROWTH Q4 '15 to Q4 '16: $.50 SECTOR: TECHNOLOGY SERVICES ASSETS-LIABILITIES: 5.8 DIVIDEND: NONE This stock is a new addition to my portfolio. The price-to-earnings multiple is higher than my target price-to-earnings multiple, but I decided to purchase the stock due to its solid year-over-year EPS growth, positive chart alignment, positive cash flow, ubiquitous market presence, and rapid growth in the technology sector. I believe this stock will head much higher, and that its earnings will keep up with the rapid pace of its growth to ensure its stability. Google became a popular product due to its excellent search engine. As a result of its success, with approximately 80.5% of global market share according to a recent survey, Google has built a strong revenue base through its advertising services. However, Google has taken the challenge of expanding its services beyond the search engine field i...
Post a Comment
Read more