Priceline Group (PCLN) Down In Early Morning Trading

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.

Trade-Ideas LLC identified Priceline Group ( PCLN) as a pre-market laggard 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 $815.9 million.
  • PCLN traded 28,290 shares today in the pre-market hours as of 8:48 AM.
  • PCLN is down 3.3% today from yesterday's close.

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More details on PCLN:

The Priceline Group Inc. provides online travel and travel related reservation and search services. PCLN has a PE ratio of 27.8. Currently there are 15 analysts that rate Priceline Group a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Priceline Group has been 666,900 shares per day over the past 30 days. Priceline Group has a market cap of $65.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.88 and a short float of 2.4% with 1.88 days to cover. Shares are up 11.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Priceline Group 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 no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • PRICELINE GROUP INC has improved earnings per share by 19.9% 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 $45.73 versus $36.01 in the prior year. This year, the market expects an improvement in earnings ($56.84 versus $45.73).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet & Catalog Retail industry. The net income increased by 19.5% when compared to the same quarter one year prior, going from $378.08 million to $451.83 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 19.8%. Since the same quarter one year prior, revenues rose by 19.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.58, which clearly demonstrates the ability to cover short-term cash needs.

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