Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member. Inc (PCLN): The Best of the Best Inc (NASDAQ:PCLN)‘s stock continues to challenge bearish views and stay close to the $800 level. Many pessimistic investors have repeatedly asked why or how this company has continuously reached new highs. The answer lies within the question; it’s because Priceline has become the number-one vacation provider for traveling. Inc (NASDAQ:PCLN) Inc (NASDAQ:PCLN) has tons of potential to grow because it does about 70% of its revenue abroad. Fundamentally, Priceline has never looked better with a P/E of 28 and a 34% operating margin; Priceline also has about $103 per share in cash. Another factor to consider is the fact that it has beaten earnings estimates for 12 straight quarters.
International affairs Inc (NASDAQ:PCLN) dictates the international online-travel marketplace with its and brands. Many investors were worried that the European and Greek-specific crises would affect Priceline’s earnings, but that didn’t happened. Bookings in Europe have been rather consistent, and considering that only 25% of the European hotel market is online, there’s plenty of room for growth. Priceline has less than 10% of its total hotel bookings in Europe. There’s considerable room for growth in Europe. There is also considerable potential in Asia, the Middle East, and Africa. Inc (NASDAQ:PCLN) is looking to build up its existence in the U.S. market. Priceline is planning on rolling out an advertising blitz to increase the presence of its brand in the U.S. This would lower margins to some extent in the next few quarters, but will increase the site’s presence in the large U.S. market and deliver phenomenal growth down the road.
Analogous to Priceline, Expedia Inc (NASDAQ:EXPE) has had a phenomenal start for 2013. Expedia is taking a smart strategic route to continue its growth. Expedia still dominates most of the U.S travel market as it has a 43% market share compared to Priceline’s 11%. Inc (NASDAQ:PCLN)’s competitors have also started to penetrate its margins. Currently, Priceline has margins of approximately 34%. Analogous to Priceline, Expedia also has a horde of cash on its balance sheet; currently more than $2 billion.
Expedia Inc (NASDAQ:EXPE) has had its losses. It reported a loss of $0.24 on April 25. Because of these results, analysts have decided to tremendously lower estimates; one notable analyst firm is Zacks, going from $3.03/share to $2.58/share
Orbitz Worldwide, Inc. (NYSE:OWW is also having a phenomenal start for 2013 with accelerating growth. These companies continue to invest in three key areas: mobile, loyalty, and international markets. Orbitz rolled out its Rewards Loyalty program in the first quarter and enhanced its HotelClub initiative with expanded support for more currencies and foreign languages to allow it to expand further into the international market.
Orbitz Worldwide, Inc. (NYSE:OWW) has a relatively high valuation, currently trading at 26 times forward earnings. This is more than both Inc (NASDAQ:PCLN) and Expedia. Orbitz has also proved to be the weakest company of the three because it has gone back and forth between making and losing money. Both Priceline and Expedia have been firmly profitable.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.