NASDAQ:PCLN
$205.43
(2/9 2:42PM)
+2.4%
| Open | $203.5 |
Mkt Cap | $8.8 Billion |
| High | $206.33 |
52Wk High | $231.49 |
| Low | $203.23 |
52Wk Low | $72.00 |
| Volume | 692,715 |
Avg Vol 10D | 923,800 |
Ockham's Rating/Recommendation Summary
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PCLN Revenue
As a value investing shop, we are interested in seeing how PCLN's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 2.77x and the low end of the range at 0.93x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for PCLN of 3.93x is well above its historical average. This means that PCLN looks relatively expensive compared to its historical Price to Sales average, and thus it is more difficult to believe that there is significant price appreciation potential. In order for the stock to become more attractive, we would like to see a decline in the Price to Sales ratio of 112% just to return PCLN to its historical average.
PCLN Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently PCLN is below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for PCLN, the current level of Cash Earnings compared to its historical levels helps identify where PCLN is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 26.65 and a historical low Cash Earnings per share ratio of 9.66, an investor can relate where value becomes optimal.
With a historical average Cash Earnings ratio of 18.16, the current Cash Earnings ratio of 17.17 is a positive opportunity for value in the Ockham view. Naturally, we would love to see a deeper value opportunity for PCLN, but to get there one of two things must occur (or both). Either the stock price must decline further to increase the long term buying opportunity, or the management at PCLN needs to earn more cash. If either, or both, of these occur, then we could see a significant gap emerge between what investors were willing to pay for in the past, and where PCLN is trading currently (latest close price of $196.96).
PCLN Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for PCLN to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. Although they may currently pay a dividend, our data source has no historical record of it for PCLN. Since we cannot apply our historical trend analysis to dividends for PCLN we have a neutral score for the dividend portion of our analysis.
Look Out for Priceline.com Inc.: Its Very Active in the News
We are observing a lot of attention being paid to PCLN in the news, so if you hold the stock you may want to take a look at what is going on.
The Ockham valuation currently has a Fairly Valued stance on PCLN because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Priceline.com Inc. has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Priceline.com Inc. underperforming.
“… PRICELINE raised to a positive from neutral at susquehanna. Expedia on the online travel site. Meantime, amazon also getting an upgrade over at collins stewart which thinks too ... …”
PCLN's EPS discussed on Tech Trader Daily-Barron's
PCLN's earnings per share was discussed on Tech Trader Daily-Barron's which means there is something significant going on. Profits are the metric we pay the most attention to in our methodology.
Priceline.com Inc. receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; PCLN has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… Susquehanna Financial analyst Marianne Wolk this morning upped her rating on PRICELINE (PCLN) to Positive from Neutral. Wolk notes that a recent strengthening of the dollar ... …”
What are the Experts Saying? Analysts and PCLN on Squawk On The Street
When the television or blog talks about an analysts' opinion it could have a major impact on the stock.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk On The Street said about PRICELINE.COM INC.
Learn About RazorWire?Interested in PCLN? See What the Pundits Said on Power Lunch
The latest news from Power Lunch on PCLN is available through Ockham's news analytics platform RazorWire.
Priceline.com Inc. receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; PCLN has received less coverage from the financial media in business television and blogs.
“… Amazon down 175%, PRICELINE 2. 5, ebay 0. 3. Online retailers doing poorly. Chips doing poorly today. Amat up . 4%. And intel one laggard in this. …”
Check Out Street Signs and News on PCLN
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on PCLN from Street Signs.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, PCLN has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like PCLN and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on PCLN.
“… Domestic airlines jetblue down 2% in a bit of a counter intuitive trade and weakness crept in here, but expedia and PRICELINE. COM both hitting new highs today. …”
Short Sellers and PCLN Discussed on Fast Money
Short selling and Priceline.com Inc. were part of the discussion on Fast Money, and investors both long and short will be interested in their discussion.
In comparison to the other stocks that we follow, Priceline.com Inc. has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Priceline.com Inc. underperforming. The Ockham valuation currently has a Fairly Valued stance on PCLN because it trades within the price range that we would expect given current market conditions and fundamentals.
“… We saw what happened in PRICELINE and amazon when you get that going. It might not be over in the after hours here, it might continue tomorrow. > > very good point. . …”
Holding PCLN Stock? See What Is Being Discussed on Fast Money
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on PCLN from Fast Money.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Priceline.com Inc. has been talked about more than normal recently. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on PCLN. The crowd at The Motley Fool does not like PCLN and believes that it will Underperform.
“… We all know about the efficiencies of the airlines, so if this continues, look at the stock price p PRICELINE I mean, there is something going on in the travel industry right now,... …”
Discussion Turns to PCLN and Merger Talk on Countdown to the Closing Bell
News broke today regarding mergers and acquisitions and Priceline.com Inc. was discussed as well on Countdown to the Closing Bell. Other sources will be required to know exactly what the context was in the discussion.
In comparison to the other stocks that we follow, Priceline.com Inc. has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Priceline.com Inc. underperforming. The Ockham valuation currently has a Fairly Valued stance on PCLN because it trades within the price range that we would expect given current market conditions and fundamentals.
“… You ran PRICELINE and medco in the '90s absorbed by merck and became a huge merger of that year, if not the biggest, I believe. > > …”
Interested in PCLN? See What the Pundits Said on Power Lunch
Priceline.com Inc. is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Power Lunch.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Priceline.com Inc. underperforming. The Ockham valuation currently has a Fairly Valued stance on PCLN because it trades within the price range that we would expect given current market conditions and fundamentals. In comparison to the other stocks that we follow, Priceline.com Inc. has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… But they're the prime iteration of it going forward and we have PRICELINE as well. I would look more at these kind of new economy plus sales rather than the big boxes which have... …”
Short Sellers and PCLN Discussed on Fast Money
Short sellers will want to take a look at the PCLN discussion from Fast Money recently.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Priceline.com Inc. underperforming. The Ockham valuation currently has a Fairly Valued stance on PCLN because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Priceline.com Inc. has actually sunk a bit in comparison to the others.
“… The stock, and of course with that option spread that's my entire rix, I have no additional down side risk whereas you buy PRICELINE at 173 it looks great with if f. …”