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
) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Priceline Group 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 $787.5 million.
- PCLN has a PE ratio of 32.6.
- PCLN is currently in the upper 30% of its 1-year range.
- PCLN is in the upper 25% of its 20-day range.
- PCLN is in the upper 35% of its 5-day range.
- PCLN is currently trading above yesterday's high.
- PCLN has experienced a gap between today's open and yesterday's close of 0.5%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on PCLN:
The Priceline Group Inc. operates as an online travel company. PCLN has a PE ratio of 32.6. Currently there are 15 analysts that rate Priceline Group a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Priceline Group has been 772,000 shares per day over the past 30 days. Priceline Group has a market cap of $64.4 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.56 and a short float of 2.5% with 1.82 days to cover. Shares are up 6.6% year-to-date as of the close of trading on Monday.
rates Priceline Group as a
. 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 compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.4%. Since the same quarter one year prior, revenues rose by 26.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although PCLN's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 5.14, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 31.30% and other important driving factors, this stock has surged by 38.33% 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 GROUP INC has improved earnings per share by 31.3% 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 GROUP 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 ($52.31 versus $36.01).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Internet & Catalog Retail industry average. The net income increased by 35.6% when compared to the same quarter one year prior, rising from $244.27 million to $331.22 million.
- You can view the full Priceline Group Ratings Report.