Priceline.com Incorporated (PCLN) Shows Signs Of Being Water-Logged And Getting Wetter
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified priceline.com Incorporated (PCLN) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified priceline.com Incorporated as such a stock due to the following factors:
- PCLN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $938.5 million.
- PCLN has traded 474,227 shares today.
- PCLN traded in a range 203.1% of the normal price range with a price range of $58.98.
- PCLN traded below its daily resistance level (quality: 40 days, meaning that the stock is crossing a resistance level set by the last 40 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.EXCLUSIVE OFFER: Get the inside scoop on opportunities in PCLN with the Ticky from Trade-Ideas. See the FREE profile for PCLN NOW at Trade-IdeasMore details on PCLN: priceline.com Incorporated operates as an online travel company. PCLN has a PE ratio of 36.1. Currently there are 18 analysts that rate priceline.com Incorporated a buy, no analysts rate it a sell, and 1 rates it a hold.The average volume for priceline.com Incorporated has been 753,600 shares per day over the past 30 days. Priceline.com has a market cap of $67.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.55 and a short float of 2.2% with 1.44 days to cover. Shares are up 10.7% year-to-date as of the close of trading on Thursday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates priceline.com Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.6%. Since the same quarter one year prior, revenues rose by 29.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- PCLN's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.28, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 26.82% and other important driving factors, this stock has surged by 87.96% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PCLN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- PRICELINE.COM INC has improved earnings per share by 26.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PRICELINE.COM INC increased its bottom line by earning $36.01 versus $27.71 in the prior year. This year, the market expects an improvement in earnings ($51.52 versus $36.01).
- The gross profit margin for PRICELINE.COM INC is currently very high, coming in at 86.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.53% significantly outperformed against the industry average.
- You can view the full priceline.com Incorporated Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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