This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Smooth Sailing at Priceline

Investors have certainly beamed Priceline (PCLN - Get Report) up this year.

Shares in the William Shatner-fronted online travel company have surged, in spite of renewed terror threats and fears that the economy is slowing. While rival Expedia (EXPE - Get Report) has lost a third of its value after repeated earnings setbacks, solid performer Priceline has soared 46%.

Now, while the government warns fliers against carrying liquids in their carry-on baggage, investors are hoping Priceline can keep surfing the discount-travel wave.

"We continue to believe Priceline is well-positioned in the online travel industry and expect it to maintain the highest growth rate in the industry for the foreseeable future," writes Stifel Nicolaus analyst Scott Devitt in a note to clients this week.

The going has been a bit rough of late. Priceline shares sank 3% Wednesday after Devitt cut his rating to hold from buy on valuation concerns. "We would become interested in the shares again in the upper-$20s," he said. Priceline closed Wednesday at $31.26.

Priceline wasn't the only travel stock to get hammered Wednesday. Expedia dropped 1.4%, and online publisher Travelzoo (TZOO - Get Report), another solid performer this year with a 42% gain, dropped 11%.

Priceline, which gained its notoriety by letting people name their own price, now sells the same airfare, hotel rooms and rental cars for published prices. Consumers have responded well to the fixed-price offerings, sending gross travel bookings up 62% in the last quarter. Priceline also is benefiting from two well-timed acquisitions in Europe, a market that some observers say is underpenetrated for Internet travel.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
PCLN $1,153.40 1.60%
TZOO $9.76 1.20%
EXPE $94.13 0.48%
TSLA $182.99 -1.10%
YHOO $45.21 0.24%

Markets

DOW 17,975.14 +262.48 1.48%
S&P 500 2,077.19 +16.17 0.78%
NASDAQ 4,930.1010 +38.8820 0.79%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs