Priceline stock takes a trip upward

Share prices for the travel reservation website rose after better-than-expected earnings.

By Motley Fool Aug 9, 2013 5:03PM
Travel reservation website Priceline.com (PCLN) released earnings, and profits were up 24%. The company showed increased bookings, and strength both in Asia and Europe.

While competitor Orbitz (OWW) also jumped up Thursday on dramatically better-than-expected earnings, Orbitz is only a fraction of the market cap of Priceline, which is far and away the big dog in the industry.
Motley Fool analyst Ron Gross talks with host Chris Hill about Priceline, and where the company should go from here. Ron looks at the idea of Priceline acquiring smaller competitors such as Orbitz, but thinks the company would be better served by just continuing to execute as it has been.

Image: Man and woman sitting and reading map © Maria Teijeiro, OJO Images, Getty ImagesWith Priceline's stock approaching $1,000 per share, many investors get sticker shock, but Ron reminds investors not to focus on price per share, but to keep valuation in mind instead. He notes that at 25 times earnings, the company isn't nearly as pricey as many think, and tells investors that in his opinion, the company is doing very well.


The Motley Fool's 12 top stocks for 2013 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2013: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2013! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now.


MSN Money on Twitter and Facebook

Like us on Facebook: MSN Money and Top Stocks

Follow us on Twitter: @msn_money and @topstocksmsn

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

129
129 rated 1
281
281 rated 2
444
444 rated 3
732
732 rated 4
629
629 rated 5
623
623 rated 6
610
610 rated 7
440
440 rated 8
303
303 rated 9
126
126 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
BBBYBED BATH & BEYOND INC10
TWXTIME WARNER Inc10
COPCONOCOPHILLIPS9
HDHOME DEPOT Inc9
VZVERIZON COMMUNICATIONS9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.