What Is Fueling the Boom in Online Travel Stocks?

Priceline (PCLN) Continues to Wow the Street

Perhaps the most well-known online travel stock out there is Priceline.com (PCLN). The company continues
to be the leader in the online travel segment, and a look at its recent quarterly numbers tells us why.

In early August, the company reported earnings of $2.02 per share, a whopping 30% increase from the year-ago quarter. Wall Street had expected the
company to come in with earnings of 75 cents per share, and a revenue increase of just 17%. The company credited its strong performance to an increase
in leisure travel, once again a finding contrary to the popular notion that folks would pare down their travel in a recession.

Remarkably, Priceline.com has now beat earnings by at least 10 cents for 11 consecutive quarters, and the company has posted six straight years
of earnings growth

In the price chart here of PCLN, we see the stock making a steady, yet very strong ascent that’s taken the shares above both the 50- and 200-day
moving averages. As we’ve said already, this is certainly good news from a technical perspective. But the really good news here is that unlike OWW
or even EXPE shares, PCLN shares are nowhere near as overextended. Year-to-date PCLN shares are up 104%, but those gains have been building up since
the shares hit their year-to-date low in January.

Next – Why Online Travel Stocks Are Doing So Well