Buy Today: Priceline.com Inc.'s Buy Recommendation Reiterated

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.

NEW YORK ( TheStreet) -- Priceline.com (Nasdaq: PCLN) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, expanding profit margins and good cash flow from operations. 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 7.8%. Since the same quarter one year prior, revenues rose by 33.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 34.81% and other important driving factors, this stock has surged by 79.42% 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 34.8% 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 $27.71 versus $20.65 in the prior year. This year, the market expects an improvement in earnings ($41.18 versus $27.71).
  • The gross profit margin for PRICELINE.COM INC is currently very high, coming in at 87.63%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 36.69% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $970.46 million or 43.78% when compared to the same quarter last year. In addition, PRICELINE.COM INC has also modestly surpassed the industry average cash flow growth rate of 36.46%.

priceline.com Incorporated operates as a online travel company. Priceline.com has a market cap of $58.9 billion and is part of the services sector and diversified services industry. The company has a P/E ratio of 33.00, above the S&P 500 P/E ratio of 18.00. Shares are down 2.6% year to date as of the close of trading on Friday.

You can view the full Priceline.com Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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