Is Priceline A Solid Long Term Swing Trade?

By Author: Daniel Bowman
Total Articles: 3
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During the early days of hotel bookings and plane ticketing, it had never struck the imagination of travelers that they could name their own prices. Priceine.com and William Shartner made this dream a reality. The mixture of technology, new pricing strategies and aggressive marketing has made Priceline not only famous but also valuable in terms of adding value for it's shareholders. Priceline stock has been in the consumer bucket of many investors; individuals and corporate alike. The brilliant performance of Priceline has seen its stock increase by 75% over the past quarter. The first quarter has been impressive both in terms of price and earnings. Investors who had bought the stock five years prior are enjoying a +1,382% gain. This is not an exaggeration as evidenced by the +106% returns just within three months. This stock has shown incredible growth.Reasons to consider investing in Priceline stockImpressive Earnings Priceline has been reporting tremendous growth in earnings with a remarkable second quarter earnings report that showcased a +71% net income jump. This last year August 3rd announcement made the prices of Priceline ...
... hike. Looking at the earning components, the net income totaled $158.2 million against a backdrop of 27% growth in revenue in quarter two. The forecasts of Wall Street were exceeded by Priceline which reported earnings per share surpassing the $2.64 Wall Street estimate. Following the announcements the stock gained 23% a day later.Priceline is a value stockThe reason behind investors and consumers alike rushing for this stock is its value component. Every investor would like to invest in a stock which will add value to their portfolio. This is true of Priceline which has been in the recent past sending a message of it being a value adding stock. Priceline as a company has made enviable progress especially ion the area of hotel booking and plane ticketing. By making consumers name their own price, Priceline has become a darling of many travelers all over the globe. In these hard economic times, this option by Priceline has worked best for cash-strapped consumers.The International ElementThe growth in earnings and revenue was not only tremendous but worth a mention. The company ventured in the international arena by recording a massive 63% rise in international operations compared to the same quarter the previous year. With its global hotel reservation stamping a strong footprint and an impressive 59% increase in its travel bookings, Priceline makes a good buy. with international travel and hotel bookings having positive prospects the only way for Priceline is up. The Europe market in particular stands at the centre of Priceline projected growth. This will have a price rise impact coupled with a substantial earnings growth. In conclusion, Priceline is a strong stock which should attract any long-term investor. If analysts' reports and opinions are anything to go by, the company earnings are likely to grow significantly promoting a tremendous rise in its stock price. To those who think the heydays are over, Priceline has a message for them. Though the growth in earnings and revenue may not be by the same scale, though the price increase in its stock may not be by the same measure, those who invest in this stock will not be disappointed. It is unlikely that the company will grind to a halt in the near future gauged by its robustness in operations. As long as Priceline is around, value will be closer to it always. To learn how to trade stocks and futures, visit our website at http://www.exatrades.com.