Priceline.com (NASDAQ:PCLN) is an online booking giant that performs like an agile startup. Despite being industry top dog in terms of earnings per share growth, long-term growth rate and return on equity, Priceline is constantly finding ways to draw in new customers and to promote customer loyalty. In October, it launched its Hotel Negotiator App, a service that allows last-minute travelers to find great hotel deals through their smartphones and tablets. This service was so successful that when citizens in New England were hit by a freak October snowstorm, Priceline.com saw a 270% surge in hotel bookings through this mobile app.
The company also has Asia and Latin America in its sights: This year, analysts expect Asia bookings to grow by 150% and Latin American bookings to triple. PCLN has served me well in the past few years, and I expect a similarly stellar performance going into 2012.
2012 Estimated Sales Growth: 25.2%
2012 Estimated Earnings Growth: 29.5%
Tempur-Pedic (NYSE:TPX) is at the top of the food chain of mattress makers, but it’s still an excellent growth stock. A number of emerging economic trends point to better performance for Tempur-Pedic — and for mattress makers as a whole. Most important, consumers are starting to bring in more disposable personal income. This is crucial, because the more disposable income consumers have, the more willing they are to replace their old mattresses.
During stressful times like this, having a good mattress is crucial, and it’s no secret that Tempur-Pedic mattresses are considered Consumer Digest Best Buys. So, specialty mattress makers like Tempur-Pedic are vastly outperforming the mattress industry. For the first nine months of the year, innerspring mattress unit sales were up just 0.5%, compared with a 24.6% boom in specialty mattress units. As a top specialty mattress maker, Tempur-Pedic is slated to bring in 24% sales growth and 24% earnings growth for the fourth quarter — an impressive figure considering that analysts expect the larger Home Furnishings & Fixtures industry to post a 36% profit loss.
Although it has taken longer than expected to launch, I expect TPX will take off as personal income climbs.
2012 Estimated Sales Growth: 12.8%
2012 Estimated Earnings Growth: 19.3%
XPO Logistics (NYSE:XPO) has had a wild ride, thanks to the headline-grabbing news in June that an investment group led by entrepreneur Bradley Jacobs would invest up to $150 million in the company, with Jacobs becoming its chairman and CEO. This news prompted an incredible run — the stock soared over 74% from the beginning of June to the end of July. During August’s and September’s volatile trading, investors scaled back their enthusiasm, and the stock dipped.
However, shares of XPO are still trading about 20% above its early-June levels, and the fact remains that Jacobs has every intention to turn XPO Logistics into a multibillion-dollar enterprise. He has a fantastic track record, with over 500 acquisitions under his belt, including rental juggernaut United Rentals. I can’t wait to see what he’ll do with this already-strong company in the upcoming year.
2012 Estimated Sales Growth: N/A
2012 Estimated Earnings Growth: 15%