Today I am opening my 10th trade of the year in what has so far been a good year. As is always the case, you can see past 2016 (and previous years) trades here:
http://www.intelligentspeculator.net/livetrades
Let’s start off by looking at the numbers:
| Ticker | Name | Price | PE Ratio | PE Next Year | Return YTD | Sales Growth | Analyst rating | Book Value | Beta | Revenue/Share | Sales 5Y Avg Growth | EPS 5Y Avg Growth |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| PCLN | Priceline Group Inc/The | 1767.98 | 28.24 | 20.45 | 20.66 | 16.47 | 4.62 | 200.22 | 1.23 | 217.07 | 19.02 | 24.87 |
| TZOO | Travelzoo Inc | 9.2 | 19.36 | 21.67 | -3.19 | -9.29 | 3 | 1.31 | 1.35 | 9.18 | -3.44 | N/A |
Revenue growth for PCLN unsurprisingly has been very steady over the years while Tzoo is not seeing much positive
Long Priceline (PCLN)
Priceline has been one of the most consistent stocks not only in the tech sector but in the overall market for over 10 years. It has been able to improve its core products but also make timely acquisitions to cover areas that it was lacking. Priceline is the clear leader in the online travel space and while I do expect to see TRIP gain ground at some point, there really is no one that can challenge PCLN giving me confidence that they will be able to maintain steady growth on top and bottom lines as more of the travel booking dollars move online.
Next earnings: May 3rd 2017
Short Travelzoo (TZOO)
Continues to be challenging for me to understand how Travelzoo (TZOO) could be trading at a comparable forward P/E to Priceline. Not only has the company displayed very little top or bottom line growth but I’m not seeing much in terms of product innovation in a fast changing environment. I personally see TZOO’s model in a similar way to what Groupon was built on which still works but is clearly not doing as well these days.
Next earnings: April 27th 2017
