It’s hard to believe Priceline.com (PCLN) is one of the most expensive stocks by face value. After all, the online travel company was a classic example of the dot .com boom-and-bust.
Shares went for more than $900 at one point in 1999. A year later they were below $10. But PCLN didn’t die, and after squeaking through the rest of the decade, went on a tear in 2010 and didn’t look back.
The stock is up 84% for the year-to-date — on relatively tiny volume, of course. An average of fewer than 8,000 PCLN shares change hands every day.
Priceline has a forward P/E of 22, but then, earnings are forecast to grow at an average pace of almost 20% a year for the next five years or so.