High-Growth Stocks to Buy #4: Priceline.com (PCLN)
Priceline.com (PCLN) is one of those Internet stocks that many investors talk about, and many investors are afraid of thanks to volatility and steep valuation.
Oh, and a sticker price of $1,180 per share doesn’t help PCLN stock reach the top of many investors’ lists, either.
But the performance of shares speaks much more than anything else. Consider these returns:
- Up 90% since January 2013
- Up 151% since January 2012
- Up 195% since January 2011
This is surely a momentum stock, but the momentum continues to be pointed higher — unlike some other players that are breaking down in 2014.
It’s not just the value of PCLN that’s growing impressively. Revenue more than doubled from $3.1 billion in fiscal 2010 to $6.8 billion in fiscal 2013, and earnings per share tripled in the same period from $10.35 in EPS for 2010 to $36.11 last year.
You can understand why so many investors are high on PCLN stock … and in fact, recent data showed that among top hedge funds, Priceline is the most popular stock to own. Insider Monkey estimated that at the end of Q1, 67 hedge funds were long Priceline stock, with Lone Pine Capital alone plowing $1.2 billion into Priceline shares. All in all, institutional and mutual fund investors own a staggering 98% of PCLN stock.
If you want to buy what the smart money is buying, you probably won’t find a more popular holding on Wall Street than Priceline.com.
I like PCLN stock under $1,200.