Priceline.com Inc. (PCLN): Today's Featured Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Priceline.com ( PCLN) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole was unchanged today. By the end of trading, Priceline.com fell $16.69 (-2.3%) to $696.81 on average volume. Throughout the day, 583,934 shares of Priceline.com exchanged hands as compared to its average daily volume of 615,900 shares. The stock ranged in price between $694.90-$707.62 after having opened the day at $706.43 as compared to the previous trading day's close of $713.50. Other companies within the Services sector that declined today were: Ambow Education ( AMBO), down 16.1%, Rainmaker Systems ( RMKR), down 15.4%, ChinaNet Online Holdings ( CNET), down 11.8%, and CIBT Education Group ( MBA), down 9.9%.
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priceline.com Incorporated operates as a online travel company. Priceline.com has a market cap of $35.57 billion and is part of the leisure industry. The company has a P/E ratio of 25.8, above the S&P 500 P/E ratio of 17.7. Shares are up 15% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Priceline.com a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Priceline.com as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Fortune Industries ( FFI), up 145%, Ultrapetrol Bahamas ( ULTR), up 20.3%, TravelCenters of America ( TA), up 19%, and YRC Worldwide ( YRCW), up 15.7%, were all gainers within the services sector with GameStop ( GME) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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