Watching This Great Growth Stock Closely
I follow the chart patterns on all the elite growth stocks and want to turn your attention now to PCLN. Priceline is one of the best performers if not the best performing growth stock over the past decade. Going from about $8 to near $800 during that time span.
Priceline does not get nearly the press as Apple does but is about 20 times smaller in terms of market cap. And top analysts such as Mark Mahaney at Citi think they can continue to grow earnings and sales strongly in the future even with weakness in Europe and China (a lot of their revenue comes from Europe). As they did in the wake of the “Flash Crash”.
The company beats estimates about as consistently as any large company in the market. For many years. With large earnings beats typically in the 30 to 70 cent per share range. And right now no one is talking about the bullish double-bottom pattern that has formed on the weekly chart:
A pretty well-formed double-bottom pattern with less than a 30% correction in the price from the highs to the lows in the pattern. The 2nd bottom in the W formation took out the prior low which is a good sign.
But now the market is going into correction mode which will likely prevent Priceline from reaching its ideal technical entry point. We will be looking for another bullish setup and feature it in our newsletter once its near an ideal technical entry point.