Inc. (PCLN): Leisure's Featured Underachiever Of The Day

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. ( PCLN) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day down 1.1%. By the end of trading, fell $11.90 (-1.6%) to $708.80 on average volume. Throughout the day, 597,821 shares of exchanged hands as compared to its average daily volume of 637,600 shares. The stock ranged in price between $702.40-$716.02 after having opened the day at $714.99 as compared to the previous trading day's close of $720.70. Other companies within the Leisure industry that declined today were: Pizza Inn Holdings ( PZZI), down 10.4%, Red Lion Hotels Corporation ( RLH), down 4.6%, Orbitz Worldwide ( OWW), down 4.5%, and Full House Resorts ( FLL), down 4.4%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass. Incorporated operates as a online travel company. has a market cap of $35.48 billion and is part of the services sector. The company has a P/E ratio of 25.7, above the S&P 500 P/E ratio of 17.7. Shares are up 16.2% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Nevada Gold & Casinos ( UWN), up 5%, Chanticleer Holdings ( HOTR), up 5%, PokerTek ( PTEK), up 4.9%, and Cosi ( COSI), up 2.9%, were all gainers within the leisure industry with Royal Caribbean Cruises ( RCL) being today's featured leisure industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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