Monday, November 7, 2011

Take a Trip With Priceline, but Bypass Orbitz

When it comes to booking online travel, Priceline.com (NASDAQ: PCLN ) and
Orbitz (NASDAQ: OWW ) are among the biggest players. And with U.S. economic
growth at a mere 2.5% in the third quarter, it seems reasonable to assume that
travelers would be flocking to these sites to save money. So, should you invest
in or avoid these two stocks? Priceline will report its third-quarter earnings
after Mondays close, and those results are expected to be explosive. Analysts
forecast an 85% spike in revenue to $1.42 billion and an 82% EPS rise to $9.02 .
During its second quarter, 50% of Pricelines revenue came from outside the U.S.
a 90% increase over 2010. Priceline must be doing something right because its
growing much faster than the industry. According to an April 2011 eMarketer

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